Google Pulls Back The Reigns On Corporate Spending
MOUNTAIN VIEW (CBS SF) - Google's free-wheeling spending days may be over.
The Wall Street Journal reports that the company is undertaking an internal cost and accounting audit, and that top executives are now now deciding which teams are allowed to hire new workers, compared to the past practice of teams padding their staff on an annual basis. Also, things like travel, supplies and events will require more approvals than in the past.
Google (GOOG) reports its second quarter earnings on Thursday, and while its first quarter report revealed a slight decline in its expenses from the fourth quarter, costs were well up from a year earlier, approaching three billion dollars.
Spending cuts will likely make investors happy, and a Cowen Research analyst is telling clients that strong mobile ad sales for Google will offset weaker spending on PC ads, and that mobile ad prices will reach parity with PC prices in 2016.
