Google parent company Alphabet—which owns Google, YouTube and several other companies—announced a major round of cost-cutting last week. The cuts include 15% pay cuts for top executives and a 20% reduction in third-party contractors. Alphabet Chief Financial Officer Ruth Porat said the cuts are necessary “to ensure that the company continues to make sound investments in the future and invests conservatively during an uncertain economic time.”
At the same time, Twitter has announced it will discontinue support for most third-party clients, citing misuse of the platform. It said it will instead focus on building out its official apps and website. Third-party clients, such as Tweetdeck, allowed users to more easily organize their feeds and will be affected by the change.
To cap off the news, Netflix’s CEO Reed Hastings has announced that he will be stepping down from the company, with Chief Content Officer Ted Sarandos taking his place. Hastings will remain on the board, but the move signals a shift in the way Netflix does business: Sarandos is credited for Netflix’s move to original programming, which has become a staple of their service.
These changes signify a potential shift in the tech industry. Alphabet, which has largely stuck to innovative products rather than cost-cutting, is taking a cautious approach, while Twitter is trying to restore its reputation as a safe and reliable platform. And Netflix’s shift in leadership shows a new focus on original content, which could affect its ability to compete in the streaming market and its overall business strategy. As tech giants continue to navigate a volatile economy, these changes could be a sign of what’s to come.
