Google’s Concerned About Productivity
The news comes from Google parent company Alphabet’s weekly all-hands meeting, in which Pichai said that productivity isn’t where it needs to be based on the head count it currently has. In other words, people aren’t pulling their weight. According to CNBC, Pichai said that: Last week, the company reported a second consecutive quarter of weaker-than-predicting earnings and revenue — a sign that “productivity” in this case may translate to “profitability.”
Poor Economies Mean Profit-Oriented Companies
Google’s investors may be shifting, some say, from a revenue-growth mindset to a profit-growth one. This could be due in part to the tightening economy making the latter a little harder to come by than the former. And if so, that would explain the Google Cloud layoffs: Cloud services make a huge revenue, but cost so much to operate that they result in losses. In a good economy, investors would be willing to wait until a profit appeared down the road. In 2022’s economy, they want results now. What’s the takeaway here? Small businesses must be prepared for the cut-throat business models of 2022. Anything that doesn’t earn a profit quickly won’t receive support from those who hold the capital required to keep afloat.
