Google-parent Alphabet plans to cut more jobs in 2024 as it shifts resources to artificial intelligence-related projects the company told employees in an internal memo. Analysts will likely expect management to address cost-cutting when fourth quarter earnings for GOOGL stock are reported on Jan. 30.
In the company memo, Chief Executive Sundar Pichai said Google will "eliminate roles" that "create the capacity" for investment in promising areas such as AI, according to a CNBC report.
On the stock market today, GOOGL stock rose nearly 2% to 143.99.
GOOGL Stock Soared In 2023
Also, Google stock holds an entry point of 142.68 and trades within a 5% buy zone, according to IBD MarketSmith analysis. Big technology companies aim to get an edge in generative AI.
GOOGL stock has climbed 2% in 2024 after soaring 58% last year. Q4 earnings for Google stock are due Jan. 30 after the market close.
Earlier reports last week said Google has laid off hundreds of workers at hardware and software units. The co-founders of Fitbit, James Park and Eric Friedman, will also be leaving Google as part of the reorganization, Google said.
Google acquired smartwatch maker Fitbit in January 2022 for $2.1 billion.
In December, other reports said Google plans to reorganize its digital advertising business amid stepped up efforts to integrate artificial intelligence into automated platforms.
Alphabet cut 12,000 jobs, or about 6% of staff, in its largest-ever layoffs almost a year ago. The company had over 182,000 employees as of Sept. 30.
Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
