But there may be more, and it’s possible that Google is attempting to spread out the bad news instead of having it hit all at once.

  • megopie@beehaw.org
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    10 months ago

    I think this is likely the first in a lot more cuts to come. Google probably does not want to do it all at once though, potentially because that would be a huge red flag for the whole industry and hurt the confidence of investors in the industry as a whole.

    Given that Google makes most of their money by selling services to other parts of the industry, and a lot of the industry runs solely on the confidence of investors, doing a bunch of big cuts all at once would harm them. But they do need to cut back a lot more long term, because investor money is drying up to feed the companies that buy services from Google.

    • averagedrunk@lemmy.ml
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      10 months ago

      Yep. A lot of these tech companies that have run in the red for years are now being called on to produce a profit and pay the big backers.

      • megopie@beehaw.org
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        10 months ago

        The funny thing is, that most of the one who do make a profit, do so by selling goods and services to those not making a profit, and if all the unprofitable ones disappeared the “profitable” ones would suddenly be unprofitable as well.