Techs earnings bonanza this week shines spotlight on growing troubles at Tesla, Google
Summary
The troubling news comes alongside a generative AI gold rush, as tech giants race the technology into their vast portfolios of products and features to ensure they dont fall behind in a market thats predicted to top $1 trillion in revenue within a decade. On this weeks earnings calls, companies are likely to continue highlighting their efforts to cut costs and bolster profits, an efficiency theme thats been running across the tech industry since early last year. Last week, CFO Ruth Porat announced a restructuring of Googles finance department, a move that will include layoffs and relocations, as the company drives more resources towards AI. On the same day, Google terminated 28 employees, according to an internal memo viewed by CNBC, following a series of protests against labor conditions and the companys contract to provide the Israeli government and military with cloud computing and artificial intelligence services. Pichai has struggled to quell employee discontent on a host of matters since the pandemic, as the company has been forced to reckon with slower growth than in years past and an investor base thats become increasingly concerned with costs.