Google’s parent company Alphabet will slow down investment and hiring through 2023, said CEO Sundar Pichai in an email to its employees
So far this year, Alphabet shares are down 21%. The falling of shares resulted in the falling of the rest of the tech industry. The past decade's bull market has driven investors to rotate out of stocks. Chief Financial Officer Ruth Porat warned another rough period could be ahead, and the company missed analyst estimates for the first quarter.
Growth in the first three months slowed to 23% from a year earlier. When the economy opened after the pandemic, the company's shares were down from 34% growth in the first quarter of 2021. Pichai said in the letter that still in the second quarter, the company has hired 10,000 employees.
Sundar Pichai, in the memo, wrote that, like all other companies, Alphabet is not immune to economic headwinds. He added, "We need to be more entrepreneurial, working with greater urgency, sharper focus, and more hunger than we've shown on sunnier days."
Google has historically invested heavily in research and development. But it is evident from the mail of the CEO that during this period of an uncertain economy, even Google will be more particular about where it spends the money.