Google Finally Drops The Hammer


  • Google finally announced major job cuts of 12,000 employees, but the tech giant only cut the employees added during Q3 alone.
  • The company will cut billions in annual costs due to high employee costs reaching anywhere from $250K to nearly $300K each.
  • The stock is cheap at 14x ’23 EPS targets with a potential path to a $10 EPS on the targeted 20% efficiency gains.

Silver Hammer with nail puller and rubbery handle isolated. Black and white photo

Hajrudin Agic/iStock via Getty Images

As the tech sector continues to slash jobs, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) was one of the last tech giants to not announce a major job cut. Considering CEO Sundar Pichai had claimed a desire

Data by YCharts

Job cuts table

Source: Reuters

Data by YCharts

Employee costs chart

Source: TCI Fund Management

EPS table

Source: Stone Fox Capital

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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