Google recently fired 100 recruiters in the company’s first ever layoff. During today’s earnings call, CFO Patrick Pitchette hinted more headcount cuts could come if needed.
Credit Suisse analyst Spencer Wang asked if shareholders should expect the company’s costs to remain fixed going forward. Patrick answered:
“We really have a cost structure that is labour intensive and we have a lot of flexibility in our model. We’re going to manage our company responsibility in that sense.”
Translation: We have 20,000 employees — don’t believe we won’t can a few more of them if we have to.
Scary for employees, great for shareholders — that’s why we call him Google’s secret weapon.