New York, January 22: Google has reportedly terminated its contract with Appen for the 'Search Quality Raters'. The decision has reportedly cost Appen many customers. The machinery intelligence company Appen Limited received notification from Google LLC on January 20, 2024, about cancelling the global contract for inbound services.
According to the report by Business News Australia, the contract will lead to the wipeout of over 40% of the company's share price. Appen was informed about the decision, describing the development to be 'disappointing' and 'unexpected' on Saturday. The report further informed that the shares of Appen (ASX: APX) fell to 41% from Friday's close. Zee-Sony Merger: Sony Group Corporation Sends Termination of USD 10 Billion Deal With Zee Entertainment Enterprises Ltd After Two Years of Talks.
According to the post by Search Engine Journal, the news impacted Appen stock, hitting an all-time low. The announcement from Appen came after Google had laid off employees from many departments. The post mentioned that the Google layoffs led to a culture of "nihilism" and "fear" among the company's employees. The employees felt uncertain and demotivated by the company. Elon Musk-Run X Fixes Bug That Caused Platform To Incorrectly Label Numerous Posts As ‘Sensitive Media’.
According to the report by The Market Herald, Appen expressed its disappointment and highlighted Google's unexpected decision. Further, the report said all the ongoing projects will end by March 19, 2024. In November and December 2023, Appen reportedly recorded revenue of $24.1 million and $25.9 million, and the company executed cost management initiatives to 'break even on its EBITDA of $3.2 million' in the end. The report mentioned that after Google's contract termination, the service company Appen must change its strategic priorities with the further financial results to be delivered on February 27, 2024.
(The above story first appeared on LatestLY on Jan 22, 2024 01:38 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).