So much for doing more with less. Alphabet, one of the many tech giants that has been discussing the need to be more efficient, still spent a lot in its most recent quarter, which ended up hurting them. 

Google’s parent company reported a big 19% drop in operating profit for its third quarter on Tuesday as it continued to hire heavily and invest in its cloud computing business. Of course, the slow growth in its top line didn’t help. Ad revenue rose only 2.5% compared to last year. That’s much slower than last quarter, when ads were up 11.6%, even as the economy was slumping. YouTube’s ad business actually shrank in the most recent quarter to $7.07 billion, compared to the $7.2 billion it posted in the same period last year.