Google (NASDAQ:GOOGL) is making significant cuts to its global recruiting organization, as part of a broader strategy to reduce hiring over the next several quarters.
The search engine giant stated that while it continues to invest in top engineering and technical talent, it intends to slow down its overall hiring efforts. The reduction in the volume of recruiter requests has led to a decision to decrease the size of its recruiting team, the company said.
According to Bank of America analysts, this is a promising sign for Google's profit margins.
“We see the news as positive for Google and a good sign for 2024 margins. A cutback the recruiting team suggests cognizant efforts to contain expenses and 'grow revenues faster than expenses.' We currently expect Google headcount to grow 10% in 2024, with GAAP operating expenses also up 10% y/y to $96bn and recruiting cuts could drive lower headcount growth,” they wrote in a client note.
Google previously eliminated 12,000 jobs in January, which is about 6% of its total workforce.