Alphabet's artificial intelligence company based in the U.K., DeepMind Technologies, reportedly slashed staff expenses by 39 percent after seeing the decline in the share price in 2022.
DeepMind Reduces Expenses After Low Revenue
DeepMind disclosed that the company reduced employee-related expenses to $732 million from almost $1 million expenses in the previous year. This reflected an around %39 percent reduction for the 2022 financial year.
The reduction was attributed to the declining company revenue, which focuses on research and development services. The 2022 revenue for research and development reportedly fell by 21 percent. In September 2022, Alphabet CEO Sundar Pichai unveiled the company's plan to make it 20 percent more productive.
Recently, DeepMind announced the closure of its Edmonton, Canada research lab following the budget cuts across Google and the depleting demand in the tech industry. With its closure, Google revealed that it would eliminate around 12,000 jobs.
Alphabet's Future Plans for DeepMind
During the first-quarter-earning call of 2023, the Alphabet executive discussed the possible ways to allocate resources to drive the revenue upwards. This might mean the possibility of combining Google Brain and DeepMind to pool computational resources.
"Beginning in the second quarter of 2023, the costs associated with teams and activities transferred from Google Research will move from Google Services to Google DeepMind within Alphabet's unallocated corporate costs," Pichai announced during the spring earnings call.
In 2014, Google acquired DeepMind which allowed the company to run using Alphabet's financing. In 2022. DeepMind's overall profit was around $74.9 million compared to the $126 million profit in 2021.
