As the coronavirus epidemic continues to wreak havoc on the economy, Google is slashing its marketing expenses by up to half for the second half of 2020, according to CNBC.
The announcement comes only a week after CEO Sundar Pichai informed staff that the business will limit recruiting for the rest of the year as it concentrates on a few key areas.
“As we stated last week, we are re-evaluating the speed of our investment plans for the balance of 2020 and will focus on a limited number of critical marketing projects,” a Google spokesperson said in a statement Thursday. “In many business sectors, we continue to have a substantial marketing expenditure, notably in digital.”
While people throughout the world seek refuge to resist the spread of COVID-19, the global economy is in decline. The IT industry, which includes large firms valued at more than $1 trillion at times, has not been immune. As travel and entertainment advertisements disappear and customers cancel trips and vacations, Google and Facebook may experience a drop in advertising, which is the lifeblood of both organisations.
Google is poised to release its first-quarter financial report on Tuesday, providing the public its first peek at how the pandemic is affecting the search giant’s business.
Pichai indicated last week that Google will “scale back” goals in areas that aren’t crucial to the company’s success. He stated that the corporation recruited 20,000 individuals in 2019 and expected to hire a similar number this year. People who have already been employed may face delays in commencing work due to issues in supplying them with training or equipment, such as laptops or security keys, he added.