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Hello! It’s never too early to know the value of a dollar. Check out this third grade teacher who charges her students “rent” and forces them to spend fake money on homework passes and other perks.
Today’s big article highlights the earnings reports of two of the world’s largest tech companies. That includes the cost of firing him from one of those companies.
What’s on deck:
Before we get into that, let’s start with two technology companies.
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big story
cost of cutting
There are various speculations about this Google’s mass layoffs last year For that purpose famous culture. But what about the impact on the bottom line?
According to Business Insider’s Sarah Jackson, 2023 layoffs amounted to about 12,000 in January alone, shocking employees and costing Google $2.1 billion. Alphabet released the numbers as part of its fourth quarter earnings report on Tuesday.
The cost savings don’t stop there. The tech giant also reported that it expects to generate an additional $700 million in severance payments this quarter.
Google has already laid off hundreds of employees this month, impacting everything from advertising to central engineering. And CEO Sundar Pichai told employees there was more to come.
Some Google employees are fighting back after this year’s layoffs, believing they are destroying the company’s culture.
Google’s nearly $3 billion in employee layoffs wasn’t the only sore point in its earnings report. Revenue from the company’s bread and butter search business was slightly below Wall Street expectations.
Google’s revenue for the quarter ($86.3 billion) and fiscal year ($307.4 billion) grew 13% and 9% year-over-year, respectively, beating analyst expectations. But that wasn’t enough to cushion the blow from Google’s core business not meeting expectations, as the stock fell in after-hours trading.
Adding salt to Google’s wounds was last quarter’s success with Microsoft’s AI products.
The fellow tech giant posted revenue of $62 billion, an 18% increase. This growth is largely due to the company’s big bet on AI paying off.
The results confirmed the company’s strategy to move faster than some of its peers in the early stages of the AI race. Meanwhile, rival companies such as Amazon and Google are scrambling to respond.
(No one was satisfied and Microsoft stock fell a bit in after-hours trading as investors sought a uniform investment.) more Bloomberg reported on growth due to AI. )
Still, Microsoft’s strong revenue growth suggests it’s on the right track as the tech giant seeks to solidify its position as the go-to company for companies looking to leverage AI.
Three things in the market
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A crash course in analyzing Fed policy meetings. Former Fed economist Claudia Sahm said the central bank will hold its first meeting of the year, but Fed Chairman Jerome Powell’s press conference could provide important clues about how things will play out. In short, rather than what Mr. Powell is saying; how he says so.
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Today I’m going to invest like it’s 1999. According to JPMorgan, the booming stock market closely resembles the market before the dot-com crash of the early 2000s. From market composition to valuations, here’s how the two eras are eerily similar.
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China’s economy is in complete turmoil. The collapse of real estate giant Evergrande is another blow to the country, which is also battling deflation. A lack of foreign investment and a sluggish stock market haven’t helped matters.
Three things about technology
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Congress is set to grill some of the biggest names in the tech industry today. Leaders of Meta, X, TikTok and other technology companies will face questions about their platforms’ efforts to protect children from online sexual exploitation. This will be the first time X CEO Linda Yaccarino has testified before lawmakers.
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A judge has invalidated Elon Musk’s $55 billion Tesla compensation package. A judge sided with Tesla’s shareholders, who argued in the lawsuit that the CEO’s huge compensation plan was “beyond the scope of reasonable judgment.”
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Jack Dorsey’s block is the latest tech company to lay off employees. Dorsey told employees on Tuesday that “a large number” of staff would be laid off by the fintech. A person familiar with the company told BI that the number is close to 1,000.
3 things in business
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Is it really “burrito season” now? Chipotle cites the period from March to May, also known as “burrito season,” as the period when business for the fast-casual Mexican food chain is booming. The company is even planning to hire thousands of people to help staff cope with the surge in sales, but some are wondering, “Is that really the case?”
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The economy is in great shape. So why do we constantly hear news about layoffs? January was the month when companies such as the Los Angeles Times, UPS, and Microsoft laid off workers. However, data from the Bureau of Labor Statistics shows that the national layoff and layoff rate has been steadily low, hovering around 1%.
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Amazon Prime membership numbers are recovering in the United States. There seems to be more talk about Prime membership cancellations, but new data suggests membership growth may actually be increasing after falling in 2022.
In other news
What happened today
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Today’s earnings: Boeing, Mastercard, and others are reporting this.
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The Federal Open Market Committee will make decisions regarding interest rates.
Insider Today Team: Dan DeFrancesco, associate editor and anchor based in New York. Hallam Block, editor, lives in London. Jordan Parker Erb is an editor based in New York.
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