Alphabet joins a growing list of companies cutting employees – The Average Joe
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    Alphabet joins a growing list of companies cutting employees

    victorlei

    July 13, 2022

    Tech companies are turning up the heat on employees, and no one is safe. Alphabet is the latest one to cut jobs amid a slowing advertising market. But among the other ad giants, Alphabet may be the more resilient one…

    Tech companies are turning up the heat on employees, and no one is safe…

    • Meta recently cut hiring plans and gave a warning to underperforming employees.
    • Microsoft, one of the better performing tech giants in 2022, announced job cuts this week.
    • Amazon hasn’t publicly announced plans to reduce hiring — but admitted that it over-hired in its warehouses.

    Add Google to the list: The advertising market has slowed significantly, and the largest ad giant, Google, is preparing for a downturn by slowing hiring and cutting some jobs.

    Among other ad platforms, Alphabet’s ad business is known to be more resilient:

    • Performance: Alphabet’s primary ad business, Search, offers performance marketing where advertisers pay when someone clicks on a Google Search link, guaranteeing clicks.
    • Impressions: Other ad platforms — Snapchat, Twitter, TikTok and Meta — charge users based on views, with no results guaranteed.

    During a slowdown, performance marketing is safer as advertisers are more likely to reduce impression-based marketing first.

    Helps explain why $GOOG is only down 23% this year — far outperforming the other ad giants. Alphabet is also the most diversified among the big ad platforms (excluding Amazon).

    Ad results: Snapchat is the first of the ad platforms to report earnings on July 21. It’ll be a telling sign of how much the ad market is really slowing.

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