Google, a unit of technology giant Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), is combining two teams working on navigation apps; Waze and Maps. However, there will be no workforce reduction, the company said. Google expects to reduce overlapping map-making work in both teams as part of its restructuring program, a WSJ report cited.
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Waze has some 500 employees that will be combined with Google’s Geo-Services team, which operates Maps, Earth, and Street View products. Meanwhile, after a successful team transition, Waze’s current CEO Neha Parikh will step down from her position.
Alphabet, like many others, is struggling to control costs and manage the bottom line. Last month, activist investor TCI Fund Management also wrote a letter to CEO Sundar Pichai urging him to cut down redundant workforce to control expenses. Year to date, GOOGL stock has lost 34.5%.
Is Google Stock Expected to Go Up?
With 28 unanimous Buys, GOOGL stock commands a Strong Buy consensus rating. On TipRanks, the average Alphabet price target of $127.89 implies that the stock has 34.7% potential upside from current levels.
Moreover, as per TipRanks Smart Score rating, GOOGL stock has a Smart Score of 9, implying that the company is highly likely to outperform market expectations. Bloggers are bullish on the stock, and hedge funds have increased their exposure to GOOGL stock by 129.4 million shares in the last quarter.
