Google Cloud remains in focus as Alphabet trims the fat

Alphabet warned it plans to slash its rate of hiring in half in Q4 and beyond and is reassessing projects across the company as it looks to cut back on operational expenses in light of uncertain economic conditions. But it looks like the company’s Google Cloud business will continue to be a top priority even as Alphabet tightens its belt.

Speaking during a Q3 2022 earnings call, Alphabet CEO Sundar Pichai stated the company is working to sharpen its focus on a core set of products and business priorities. That effort includes “realigning our resources to invest in our biggest growth opportunities,” he added.

“Over the past quarter, we have made several shifts away from lower priority efforts to fuel higher growth priorities,” Pichai said. And in 2023, “we will continue to invest responsibly for the long term in a way that is responsive to the current economic environment.”

Pichai reportedly said last month that he is aiming to make the company 20% more efficient.

Alphabet’s effort to streamline its business will also see it slow its pace of hiring. CFO Ruth Porat noted it added 12,765 new employees in Q3, with more than 2,600 who joined the Cloud unit as part of its acquisition of cybersecurity company Mandiant. In Q4, it expects to add less than half that number, she said.

But it seems Google Cloud isn’t one of the areas where Alphabet is looking to cut back. Both Pichai and Porat said the company will continue to invest meaningfully in the business.

“The long-term trends driving cloud adoption continue to play an even stronger role during uncertain macroeconomic times,” Pichai explained of its rationale.


Consolidated revenue of $69 billion was up 6% year on year, though profit fell 26.5% to $13.9 billion. Advertising accounted for the bulk, or $54.5 billion, of sales. Google Cloud added another $6.9 billion to the tally, with this revenue figure up nearly 38% year on year. However, Google Cloud continued to operate at a loss, with this rising year on year from $644 million to $699 million.