Google Goes Beyond Layoffs to Curb Costs: Fewer ‘free lunches’, fewer…

Google Goes Beyond Layoffs to Curb Costs: Fewer ‘free lunches’, fewer…

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alphabet inc Google GOODthe announced the elimination of 12,000 jobs at the end of January and this was followed by another round of small-scale downsizing, has decided to look to other avenues of cost containment.

What happened: Google’s parent company outlined three ways to make further cost savings on top of recent job cuts, Business Insider revealed in a recent memo from the company to employees revealed.

The company said it plans to distribute its computing workloads even more efficiently and get more out of its servers and data centers, arguing that infrastructure is one of its biggest areas of investment.

Google also said it will apply “efficient and well-tuned infrastructure and software” to machine learning as it continues to “discover more scalable and efficient ways to train and deploy models.”

The company intends to outsource procurement of software, equipment and professional services, which will also likely result in significant savings, the memo added.

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Reductions in benefits: While highlighting industry-leading perks, benefits, and office amenities, Google said in its memo that it would change these programs to reflect “how Google operates today.”

This includes the closure of micro-kitchens, coffee shops and other facilities on certain days, particularly when there is a lower volume of usage due to the company’s hybrid labor policy. The company said it will also shift some fitness classes and shuttle schedules based on usage.

More importantly, the company said in the memo it has made changes to what devices are made available and how often they are replaced.

Alphabet closed Friday’s session up 2.81% at $103.73 Benzinga Pro data.

Continue reading: Alphabet likely to post in-line or slightly better-than-expected Q1 earnings, analyst says based on positive catalysts

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