Alphabet and Google CEO Sundar Pichai said, “We are pleased with our business performance in the first quarter, with Search performing well and momentum in Cloud. We introduced important product updates anchored in deep computer science and AI. Our North Star is providing the most helpful answers for our users, and we see huge opportunities ahead, continuing our long track record of innovation.”
Besides cutting the headcount, Alphabet CFO Ruth Porat said that the firm will be cutting real estate, employee services, and equipment for several years. The company took a $2.6 billion charge in the quarter for the layoffs and the reduction of office space. For the three months, Alphabet had $15.05 billion in net profits or $1.18 per share. That compares with the $16.44 billion that Alphabet reported in net income for the first quarter of 2022 or $1.24 per share.
During regular trading on Tuesday, Alphabet shares dropped 2.03% or $2.17 to $104.61. After hours, the stock rebounded $1.39 to $106 after trading near $109 when the earnings report was released. At its current stock price, Alphabet has a current valuation of $1.33 trillion.