A British hedge fund has asked Googleās parent company Alphabet to cut staff and reduce expenses. TCI Fund Management, which holds a US$6 billion stake in Alphabet, said the tech giant's recent headcount growth has been āexcessiveā and called on it to trim some employees and potentially lower salaries. In the letter to CEO Sundar Pichai, TCI said it hoped Google could be 20% more efficient and named divisions such as the self-driving car unit Waymo as a large source of unnecessary spending. Interestingly Waymo is being considered as unnecessary spending. No one is immune anymore. After Amazon, now itās Google. Waiting to see how it turns out. šæ https://www.cnbc.com/2022/11/15/alphabet-must-cut-headcount-and-trim-costs-activist-investor-tci-says.html
It is about time Google reins in its expenses
They have only $6Billion in investments and they call for a 1.25 trillion dollar company to make changes. What a shame!
think itās tricky and can go either way. if google doesnāt act, not sure what other investors will think. if google does act, folks will comment about their small investment % of tci etc. but agree 6B/1.25T ~ 0.5% approx
A good portion of investors are employees right?
Whatās is that like 5% if the company? Yāall made peanuts in the grand scheme of things.
Exactly, time to form unions so we can up our pay.
Not googley.
Genuinely curious. Why should google listen to this hedge fund? Do they have a board seat?
6 billion is still a lot of money. Imagine they decide to take out their money, others will follow.
Oh boy we have a unicorn here!!! Albertsons!! On question, it's more of the wall st move than its about comp and other things quoted in article.
It's considered as unnecessary because self driving cars are a fad
sometimes i š¤ why is there a need for self-driving cars to be honest.
I'm glad no apple investor is calling for apple layoffs
so far ā¦.. but that option doesnāt seem very far-fetched to be honest.
Do you think company who has highest cash on hand give shit about investors?
Iāve been through layoffs. Itās a very easy way for company to get rid of the employees rather than going through the pip process to fire them and cut projects. Company just pay few weeks of severance and hit them delete button on the employee ID, and itās history. I think Google will not miss this opportunity to trim down the business. No one will blame them. Iām pretty sure management is itching to start slashing. Usually, US will get major hit where as overseas hubs outside US/Europe will not get impacted much.
sometimes i think layoffs are image building/improving tactics to 1) try to reflect this in investor sentiment and/or stock prices š and 2) improve board membersā profits š
I saw this 10 times today