---
title: "The sluggish economy hurts Google and Microsoft"  
description: "Fears of an economic slump have increased as a result of a dramatic slowdown in sales at internet titans Alphabet and Microsoft."  
author: "Muskan Singh"  
published: 2022-10-27  
canonical: https://www.mindstick.com/news/2214/the-sluggish-economy-hurts-google-and-microsoft  
category: "technology"  
tags: ["microsoft", "google", "technology", "technology news"]  
reading_time: 2 minutes  

---

# The sluggish economy hurts Google and Microsoft

Google and YouTube's parent company, Alphabet, reported that sales increased by just 6% to $69 billion in the three months that ended in September. Since the beginning of the epidemic, it represented the US company's worst quarterly growth in almost ten years. **Microsoft claims that there is less demand for its technology, which includes PCs.**\

Since the beginning of the epidemic, it represented the US [**company's**](https://www.mindstick.com/news/2161/for-the-google-play-store-google-has-given-the-nod-to-truth-social) worst quarterly growth in almost ten years. Microsoft claims that there is less demand for its technology, which includes PCs. Concerns of a worldwide recession are growing as businesses and individuals throughout the world reduce spending in response to rising expenses and [interest rates](https://yourviews.mindstick.com/story/3734/how-does-interest-rates-impact-the-economy).

As a result of **YouTube ad revenues declining for the first time since the business started publishing them to the public, Alphabet's profits dropped by almost 30% to $13.9 billion in the quarter.**

For five consecutive quarters, the company's [revenue growth](https://www.mindstick.com/blog/304632/unlock-revenue-growth-with-these-marketing-strategies) has declined. The CEO of Alphabet, [Sundar Pichai](https://yourviews.mindstick.com/view/84708/google-ceo-sundar-pichai-fires-over-400-employees-in-india), said the business was 'sharpening' its focus and 'responding to the economic circumstances.'

When [**Google**](https://www.mindstick.com/news/2208/regarding-network-fees-google-and-netflix-are-being-investigated-in-south-korea) fails, 'it's a horrible portent for [digital advertising](https://answers.mindstick.com/qa/105589/how-to-implement-geotargeting-in-digital-advertising) at large,' says Evelyn Mitchell, chief analyst at Insider Intelligence, noting that social media [platforms like Facebook](https://yourviews.mindstick.com/view/85815/running-effective-ads-on-platforms-like-facebook-and-instagram) or Snap have historically been more resilient to drops in ad spending than Google's main website.

**According to the research, Google 'faces rough days' if the market situation deteriorates. Microsoft predicted that when business clients made savings this year, demand for its PC and [cloud computing](https://www.mindstick.com/articles/12172/programming-cloud-computing-driven-by-scientific-theory-viewpoints-challenges) technology would decline even more.**

The Xbox video game market has also seen a decline in sales. Due to consumers' and employees' increased reliance on technology as a result of the pandemic, large IT companies saw a surge in sales.

But given the current circumstances, the sector's prospects seem more gloomy. In recent months, **Microsoft announced layoffs while Alphabet declared a reduction in employment.** Other digital companies, like **Netflix and Twitter, have chosen to reduce their workforces, while others, like social [media platform](https://www.mindstick.com/forum/156104/what-are-the-social-media-platform-used-for-seo) Snap, have slowed the [hiring process](https://www.mindstick.com/articles/331212/7-ways-to-optimize-your-hiring-process).**

---

Original Source: https://www.mindstick.com/news/2214/the-sluggish-economy-hurts-google-and-microsoft

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