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Google adds thousands of employees but misses targets

(Image credit: Image Credit: Asif Islam / Shutterstock)

Google’s parent company has added thousands of new employees this quarter, but missed earnings expectations at the same time. Announcing its results for the third quarter of the year, Alphabet reported hiring 6,450 new people, increasing its workforce by six per cent.

Alphabet now counts a total of 114,000 employees, with the new hirings mostly going towards its cloud business. Google Cloud was the single largest area of employee growth, it was said, with technical and sales departments both bringing in fresh blood.

The company recently opened a new Google Cloud engineering centre in Seattle, which also hosts teams that work on Android, Maps and Chrome.

All this good news hasn’t reflected in its earnings, however, as the company missed analysts expectations. As its expenses grew to $31.3 billion, profits slipped by almost a third (30 per cent) – to seven billion. Alphabet reported a $6.7bn increase in capital expenses, representing a 27 per cent spike.

“We continue to invest thoughtfully in talent and infrastructure to support our growth, particularly in newer areas like Cloud and machine learning,” said Google CFO Ruth Porat in the company’s earnings news release.

The company’s earnings were $9.19 billion last year. Adjusted earnings were $10.12 per share on revenue of $40.49bn, traffic acquisition costs (TAC) included.

"Our businesses delivered another quarter of strong performance," Porat added.