Google pauses construction on big Silicon Valley campus: Report
Previously this year, Alphabet, Google's parent company, announced that it would cut about 12,000 jobs globally as the company is facing economic challenges.
- Apr 22, 2023,
- Updated Apr 22, 2023 10:40 AM IST
Google has halted construction of a massive campus in the Silicon Valley city of San Jose in an attempt at cost-cutting, CNBC reported on Friday.
Previously this year, Alphabet, Google's parent company, announced that it would cut about 12,000 jobs globally due to economic challenges.
In the last financial year, Alphabet reported lower revenue and profit than expected in the previous quarter because of the slowdown of its ad business. The economic crisis has affected the tech giant's ad sales business big time. The company is all set to release its most recent quarterly earnings figures next week.
According to the CNBC reports, a site in San Jose had been cleared for a Google "Downtown West" campus, with construction to start by the end of this year.
A report citing anonymous people states that the project was paused, with no word sent to contractors regarding when it might resume.
An approved plan for the 80-acre (32-hectare) campus included office space, housing units, and public parks, reported CNBC.
Alphabet is now facing economic challenges and implementing budget cuts after a significant hiring spree during the peak of the coronavirus pandemic by internet companies scrambling to meet demand as people went online for work, school and entertainment.
Analysts believe that the company has spent beyond their budgets during the high demands season and did not prepare itself for the economic slowdown that the future might hold.
Google is facing significant challenges with the launch of Microsoft's lead AI chatbot ChatGPT which can generate elaborate, human-like content in seconds. In addition, Microsoft is using this AI chatbot to strengthen Bing, which is a longtime rival to Google’s search engine.
As Google continues on its steady route to catch up with Microsoft-backed ChatGPT, the tech giant has started allowing users in the US and UK to test its AI chatbot called Bard.
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Google has halted construction of a massive campus in the Silicon Valley city of San Jose in an attempt at cost-cutting, CNBC reported on Friday.
Previously this year, Alphabet, Google's parent company, announced that it would cut about 12,000 jobs globally due to economic challenges.
In the last financial year, Alphabet reported lower revenue and profit than expected in the previous quarter because of the slowdown of its ad business. The economic crisis has affected the tech giant's ad sales business big time. The company is all set to release its most recent quarterly earnings figures next week.
According to the CNBC reports, a site in San Jose had been cleared for a Google "Downtown West" campus, with construction to start by the end of this year.
A report citing anonymous people states that the project was paused, with no word sent to contractors regarding when it might resume.
An approved plan for the 80-acre (32-hectare) campus included office space, housing units, and public parks, reported CNBC.
Alphabet is now facing economic challenges and implementing budget cuts after a significant hiring spree during the peak of the coronavirus pandemic by internet companies scrambling to meet demand as people went online for work, school and entertainment.
Analysts believe that the company has spent beyond their budgets during the high demands season and did not prepare itself for the economic slowdown that the future might hold.
Google is facing significant challenges with the launch of Microsoft's lead AI chatbot ChatGPT which can generate elaborate, human-like content in seconds. In addition, Microsoft is using this AI chatbot to strengthen Bing, which is a longtime rival to Google’s search engine.
As Google continues on its steady route to catch up with Microsoft-backed ChatGPT, the tech giant has started allowing users in the US and UK to test its AI chatbot called Bard.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine