Over the past several days we have seen story, after story, of projects being cancelled, staff lay offs, company staff being moved from one company over to new projects,
Google Fiber lays off 50% of it’s staff.
Pointless Project ARA cancelled
Nest staff moved across to the the Internet of Things Google Home Project.
Rumors of Nexus device range being cancelled followed by rumors of a rename.
This is just a few of the stories coming out of Google/Alphabet.
This does not include Executives moving on. It seems that all is not right and the ABC’s of the Alphabet world are not all in order.
What is our take on these changes? At first it seemed that these were just normal changes as you would expect but now it seems more like there is a serious issue somewhere and Alphabet and Google are trying to reduce operating costs.
In fact the sudden use of an automated system to select video’s on youtube to demonetize that has hit so many youtube creators over this past 72 hours is just another example. These were not new video’s but many were older ones that were suddenly deemed after several months or even years as not being ‘suitable for advertisers’ (sic). It seems, in the light of the other news stories arising that Google are trying to reduce expenses right across the board from hardware development to operating expenses.
Now we can all understand Google Fiber, that was a given, Verizon who led the way in fiber network had to cut the expenses and have all but given up on the whole thing and diverted focus to operating wireless networks, selling everything to Frontier Communications.
Other cuts and changes simply indicate that something is not right and Alphabet & Google are in crisis and retrenching. Is there an activist shareholder or even a shareholder revolt over spending? Do Google expect to have to pay the EU large sums of money? Or is there something more serious that Google have discovered, errors in their books or something worse?
The coming weeks will be interesting, what will we see unfold? Will be see a statement when they do their next earnings report? Either way there is something not right and as 2 + 2 is not equalling Four anymore.