Alphabet Beats on Earnings But Continues Cost Cuts to Fund AI Bets
• Alphabet reported strong Q4 revenue and profit, but remains focused on cutting costs to invest in AI and growth opportunities • Profit skyrocketed 52% to nearly $21B, revenue up 13% to $86.3B, beating expectations • Despite financial success, laid off 8,000 jobs (4% of workforce) in 2023, with more cuts this month at YouTube and ads • Cost savings will fund AI ambitions, like new generative model Gemini integrated across products • Stock plunged 5.5% after hours despite earnings beat, amid ongoing cost cutting and uncertainty