TCI Fund Management wants Google parent Alphabet to reduce costs by cutting its headcount in a bid to adjust to slower growth according to a report by Reuters. The activist investor also wants the company to cut losses at its self-driving unit Waymo.
TCI Fund Management (TCI) wants Google parent Alphabet to reduce costs by cutting its headcount in a bid to adjust to slower growth according to a report by Reuters. The activist investor also wants the company to cut losses at its self-driving unit Waymo.
The report cites TCI, an investor in Alphabet since 2017 with a $6 billion holding, as saying that the company currently has “too many employees and cost per employee is too high”. According to the fund, Alphabet, which has more than doubled its headcount since 29017, pays some of highest salaries in Silicon Valley.
Alphabet already announced in late October that it is planning to reduce hiring by more than 50 per cent, but TCI also wants the company to disclose operating profit margin targets and reduce losses in Other Bets, the unit that includes Waymo and other special projects. Way has reportedly notched up $20 billion in operating losses so far.
