Google (NASDAQ:GOOG/NASDAQ:GOOGL) remains one of the few within big tech and megacaps that have yet to announce mass layoffs (or reduction in forces, "RIFs") as the industry braces for growing macroeconomic uncertainties in the near term. Only its AI-driven life sciences arm, Verily, has turned to job cuts recently as it "eliminates some programs and streamlines operations". But unlike Google's big tech peers, Verily's recent decision to reduce its workforce by 200 jobs, or 15%, is unlikely to have a great impact on the consolidated company's bottom line. This is because the unit is currently housed under "Other Bets", a segment that accounts for the tech giant's investments in "early-stage technologies", which are typically nominal contributors to the consolidated top line and likely a cost center with no positive net income yet.
Google's stock was one of the biggest decliners among the FAANG megacaps in 2022, while 2023 year-to-date gains continue to lag behind peers as the broader market kicks off one of the "best starts to a year for global equities". Investor confidence in the stock has buckled at the sight of consecutive earnings misses and sales deceleration incurred at Google last year, while visibility on the company's near-term outlook remains low, given inherent vulnerability to cyclical headwinds at its core advertising business. Meanwhile, Google Cloud Platform ("GCP") continues to face stiffening competition from leading hyperscalers like Microsoft's Azure (...
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