Google is cutting its marketing budget by halfPublished by Terence Mahier | Source
Alphabet (the holding of Google), is planning to slash its marketing budgets by half meanwhile freezing hiring due to the global economic slowdown 💥
The move comes as a surprise as Sundar Pichai announced last week "some recalibration", but did not mention such drastic measures. We also discovered that the company withdrew access to skills training resources for its contractors 🧐
Prior to the pandemic, Google expected to increase marketing spending (~$18.5B in 2019)
Google is down 2% today and will report its Q1 Earnings next Tuesday. The question is whether Google's clients also cut their advertisement spending by half 😏
Some of you might think: wait, Google needs a marketing department? 🤔
The Google Careers Website presents it as a team that defines how people interact with technology and shape the perception of Google around the globe.
“Just like the 2008 financial crisis, the entire global economy is hurting, and Google and Alphabet are not immune to the effects of this global pandemic,” CEO Sundar Pichai stated in the memo sent to employees last week. “We exist in an ecosystem of partnerships and interconnected businesses, many of whom are feeling significant pain.”
Try to make a double-guess: how does this news will affect the stock short-term and how does it help predicting the earnings of Google next week?
The marketing budget slash was not much of an important piece of news for Google investors... The stock slightly rose on Friday night & now investors are bracing for Google Q1 Earning report on Tuesday night (28/04). Stay tuned 😉
- Newspill Team 💊
27-Apr 04:47 (Eastern Time)
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