{"id":510801,"date":"2022-11-16T16:15:00","date_gmt":"2022-11-16T13:15:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/google-must-take-aggressive-action-to-slash-expenses-activist-investor-says\/"},"modified":"2022-11-16T16:15:00","modified_gmt":"2022-11-16T13:15:00","slug":"google-must-take-aggressive-action-to-slash-expenses-activist-investor-says","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/google-must-take-aggressive-action-to-slash-expenses-activist-investor-says\/","title":{"rendered":"#: Google must \u2018take aggressive action\u2019 to slash expenses, activist investor says"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a41cf5f3bea8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a41cf5f3bea8\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/google-must-take-aggressive-action-to-slash-expenses-activist-investor-says\/#%E2%80%9C_Google_must_%E2%80%98take_aggressive_action_to_slash_expenses_activist_investor_says%E2%80%9D\" >&#8220;: Google must \u2018take aggressive action\u2019 to slash expenses, activist investor says&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/google-must-take-aggressive-action-to-slash-expenses-activist-investor-says\/#Alphabets_headcount_growth_is_%E2%80%98excessive_both_in_relation_to_historic_headcount_growth_and_what_the_business_requires_according_to_TCI_Fund\" >Alphabet&#8217;s headcount growth is &#8216;excessive, both in relation to historic headcount growth and what the business requires,&#8217; according to TCI Fund<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/google-must-take-aggressive-action-to-slash-expenses-activist-investor-says\/#Emily_Bary\" >Emily Bary<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9C_Google_must_%E2%80%98take_aggressive_action_to_slash_expenses_activist_investor_says%E2%80%9D\"><\/span>&#8220;: Google must \u2018take aggressive action\u2019 to slash expenses, activist investor says&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Alphabets_headcount_growth_is_%E2%80%98excessive_both_in_relation_to_historic_headcount_growth_and_what_the_business_requires_according_to_TCI_Fund\"><\/span>\n  Alphabet&#8217;s headcount growth is &#8216;excessive, both in relation to historic headcount growth and what the business requires,&#8217; according to TCI Fund<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap crawler\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001396616\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001396616\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Google parent Alphabet Inc. must \u201ctake aggressive action\u201d to cut costs, according to an activist investor. <\/p>\n<p> Christopher Hohn, the managing director of TCI Fund Management, penned a letter to Alphabet<br \/>\n        GOOG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205453964\/composite\" class=\"positive\">+2.80%<\/bg-quote><\/p>\n<p>        GOOGL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202490156\/lastsale\" class=\"positive\">+2.86%<\/bg-quote><br \/>\n       Chief Executive Sundar Pichai Tuesday urging him to lower the company\u2019s expense base, reduce losses in the Other Bets unit, and boost stock buybacks. TCI owned more than $6 billion in Alphabet shares, per the letter.<\/p>\n<div class=\"paywall\">\n       \u201cOur conversations with former executives of Alphabet suggest that the business could be operated more effectively with significantly fewer employees,\u201d Hohn wrote. \u201cWe agree with Altimeter Capital\u2019s Brad Gerstner, who wrote: \u2018It is a poorly kept secret in Silicon Valley that companies ranging from Google to Meta to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> to Uber could achieve similar levels of revenue with far fewer people.&#8217;\u201d <\/p>\n<p><strong>See also: Scathing Meta shareholder\u2019s letter calls for layoffs, less spending on metaverse<\/strong><\/p>\n<p>Hohn noted that Meta Platforms Inc.<br \/>\n        META,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205064656\/composite\" class=\"positive\">+2.50%<\/bg-quote><br \/>\n       slashed 13% of its workforce last week, while Salesforce Inc.<br \/>\n        CRM,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200515854\/composite\" class=\"positive\">+2.15%<\/bg-quote><br \/>\n       Twitter, and Microsoft Corp.<br \/>\n        MSFT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207732364\/composite\" class=\"positive\">+0.17%<\/bg-quote><br \/>\n       are among other companies that recently announced job cuts. Additionally, Amazon.com Inc.<br \/>\n        AMZN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210331248\/composite\" class=\"positive\">+0.46%<\/bg-quote><br \/>\n       is reported to be planning for the elimination of about 10,000 jobs. <\/p>\n<p><strong>See also: Facebook parent Meta begins mass layoffs of 11,000 workers as Mark Zuckerberg says, \u2018I take responsibility\u2019<\/strong><\/p>\n<p>\u201cAlphabet\u2019s headcount has increased at an annual rate of 20% since 2017,\u201d he wrote. \u201cIt has more than doubled since 2017. This growth is excessive, both in relation to historic headcount growth and what the business requires.\u201d<\/p>\n<p>Alphabet didn\u2019t immediately respond to a MarketWatch request for comment on the cost-cut recommendations.<\/p>\n<p>Hohn also argued that Alphabet\u2019s employee compensation is lofty, citing an S&amp;P Global analysis that found Alphabet\u2019s median compensation was 67% higher than at Microsoft and 153% higher than at the largest 20 public tech companies in the U.S.<\/p>\n<p>\u201cThere is no justification for this enormous disparity,\u201d he wrote, adding that while the company \u201cemploys some of the most talented and brightest computer scientists and engineers,\u201d many other employees \u201care performing <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> sales, marketing and administrative jobs\u201d and \u201cshould be compensated in-line with other <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> companies.\u201d<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Hohn further urged Alphabet to scale back losses in its Other Bets unit, which includes self-driving car project Waymo. Other Bets on the whole has generated just $3 billion in cumulative revenue over the last five years along with $20 billion in cumulative operating losses, he said. <\/p>\n<p>Waymo specifically \u201chas not justified its excessive investment and its losses should be reduced dramatically.\u201d <\/p>\n<p>\u201cIn a new era of slower revenue growth, aggressive cost management is essential,\u201d he continued. <\/p>\n<p>Shares of Alphabet were up 4.5% in midday trading Tuesday, with gains building over the course of the morning. <\/p>\n<p>Hohn noted that Alphabet shares were down 34% as of the writing of his letter. <\/p>\n<p>\u201cThe stock is very cheap,\u201d he wrote. \u201cAlphabet should take advantage of the current low valuation and significantly accelerate share repurchases.\u201d<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Emily Bary\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/marketwatch.com\/author\/emily-bary\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/emilybary\",\"text\":\"@emilybary\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:ebary@marketwatch.com\",\"text\":\"ebary@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n              <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/marketwatch.com\/author\/emily-bary\" aria-label=\"Emily Bary author page\"><\/p>\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Emily_Bary\"><\/span>Emily Bary<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><\/a><ufc-follow-author-widget product=\"marketwatch\" author-id=\"213_MW\" author-name=\"Emily Bary\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fgoogle-must-take-aggressive-action-to-slash-expenses-activist-investor-says-11668532303%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C06575-04D4-B545-7154-F88CCF58D514%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;: Google must \u2018take aggressive action\u2019 to slash expenses, activist investor says&#8221; Alphabet&#8217;s headcount growth is &#8216;excessive, both in relation to historic headcount growth and what the business requires,&#8217; according to TCI Fund Google parent Alphabet Inc. must \u201ctake aggressive action\u201d to cut costs, according to an activist investor. Christopher Hohn, the managing director of&#8230;<\/p>\n","protected":false},"author":1,"featured_media":510802,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-432441\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-510801","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/510801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=510801"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/510801\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/510802"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=510801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=510801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=510801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}