Google (NASDAQ:GOOGL) laid off 28 employees on Wednesday, according to an internal memo that was viewed by CNBC. These employees protested against labor conditions and opposed the tech giant‘s cloud computing contract with the Israeli government. According to this contract, Google will provide the Israeli military with cloud computing and artificial intelligence services.
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This news comes a day after nine Google employees were arrested for trespassing. This was after a staging sit-in at Google offices in New York and Sunnyvale, California. These employees also staged a protest in the office of Google Cloud CEO, Thomas Kurian, on Tuesday night.
Google’s Comments on the Layoffs
Commenting on the layoffs, a spokesperson for Google told CNBC that Google Cloud provides its services to various governments, including Israel, but not for sensitive military or intelligence purposes.
Moreover, in another internal memo sent by Google CFO Ruth Porat and accessed by CNBC, she stated that its finance teams will undergo restructuring, including relocations and layoffs. Porat added that the company’s finance teams globally, including in Asia-Pacific and Europe, will undergo restructuring. In addition, the company will establish operational hubs in Bangalore, Mexico City, Dublin, Chicago, and Atlanta, while maintaining a strong presence in the San Francisco Bay Area.
What Is the Future Price of Google Stock?
Analysts are bullish about GOOGL stock, with a Strong Buy consensus rating based on 30 Buys and seven Holds. Over the past year, GOOGL has surged by more than 45%, and the average GOOGL price target of $167.51 implies an upside potential of 8.3% from current levels.
