Google's parent company, Alphabet, announced that it will incur an additional $700 million in employee severance charges for the first quarter of this year. This comes after Google spent $2.1 billion on severance and other expenses while laying off more than 12,000 employees in the previous year. The disclosure was made as part of Alphabet's financial results for the full year 2023, which reported revenues of $307 billion, reflecting a 9% increase compared to 2022.
Ruth Porat, Chief Financial Officer of Alphabet, highlighted a strong fourth quarter, with consolidated revenues reaching $86.3 billion, a 13% increase from the previous year. Search remained the largest contributor to revenue growth during this period.
Porat explained that the estimated $700 million in severance-related expenses for the first quarter is part of ongoing efforts in organizational design and investment in top engineering talent. The company is prioritizing product development and innovation, emphasizing the significance of these efforts in achieving its goals.
In terms of revenue breakdown, within Google Services, revenues amounted to $76.3 billion, marking a 12% increase. Google Search and other advertising revenues reached $48 billion, up 13%, driven by growth in the retail sector. YouTube advertising revenues stood at $9.2 billion, reflecting a 16% increase, propelled by both direct response and brand advertising.
Alphabet and Google CEO, Sundar Pichai, mentioned the strong growth of subscriptions, particularly powered by YouTube Premium, Music, YouTube TV, and Google One. The Cloud segment surpassed $9 billion in revenues for the quarter, experiencing accelerated growth driven by advancements in artificial intelligence and product leadership.
Pichai highlighted Google's continued leadership in utilizing AI to enhance various products, benefiting billions of users across search, ads, and consumer and enterprise products. The company remains committed to innovation and leveraging AI to improve its offerings.
(With Agency Inputs)
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