Google 's aggressive team consolidation strategy is delivering on both cost reduction and operational speed, CFO Anat Ashkenazi reported during Q1 earnings call, where the company announced $90.23 billion in revenue, exceeding analyst expectations.
"We've announced things such as consolidation of teams, which helps not just with cost but with velocity and speed," Ashkenazi said. "We're able to get things to market faster."
The consolidation efforts, which include job cuts across multiple departments, come as Google continues implementing efficiency measures initiated by CEO Sundar Pichai in 2022. Ashkenazi, who joined Google last year, has maintained this focus, stating during her Q3 2024 debut that efficiency would be a "key priority" for her leadership.
"I think any organization can always push a little further," Ashkenazi remarked in October 2024, signaling her intent to build upon efficiency work started by Pichai and former CFO Ruth Porat.
Efficiency drive continues as Google invests $75B in AI infrastructure
The latest consolidation moves appear strategically timed as Google balances substantial AI investments with operational efficiency. Despite cost-cutting measures, the company plans to invest approximately $75 billion in capital expenditures this year, primarily on data centers supporting Google Cloud and AI technology.
"We always look at what's happening outside the organization as well as inside, but invest appropriately to drive both the short-term growth as well as the long-term growth," Ashkenazi explained.
She emphasized that current efficiency initiatives would strengthen Google regardless of economic conditions: "The way we're doing this across the business to drive productivity and efficiency should help us have a more resilient organization irrespective of macroeconomic conditions."
Recent months have seen Google implementing numerous cuts across Cloud strategy, ad sales, Trust & Safety, and Platforms and Devices units.
"We've announced things such as consolidation of teams, which helps not just with cost but with velocity and speed," Ashkenazi said. "We're able to get things to market faster."
The consolidation efforts, which include job cuts across multiple departments, come as Google continues implementing efficiency measures initiated by CEO Sundar Pichai in 2022. Ashkenazi, who joined Google last year, has maintained this focus, stating during her Q3 2024 debut that efficiency would be a "key priority" for her leadership.
"I think any organization can always push a little further," Ashkenazi remarked in October 2024, signaling her intent to build upon efficiency work started by Pichai and former CFO Ruth Porat.
Efficiency drive continues as Google invests $75B in AI infrastructure
The latest consolidation moves appear strategically timed as Google balances substantial AI investments with operational efficiency. Despite cost-cutting measures, the company plans to invest approximately $75 billion in capital expenditures this year, primarily on data centers supporting Google Cloud and AI technology.
"We always look at what's happening outside the organization as well as inside, but invest appropriately to drive both the short-term growth as well as the long-term growth," Ashkenazi explained.
She emphasized that current efficiency initiatives would strengthen Google regardless of economic conditions: "The way we're doing this across the business to drive productivity and efficiency should help us have a more resilient organization irrespective of macroeconomic conditions."
Recent months have seen Google implementing numerous cuts across Cloud strategy, ad sales, Trust & Safety, and Platforms and Devices units.
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