Alphabet on Thursday afternoon reported lower-than-expected quarterly revenue as the Google parent’s digital ad business struggled under an economic slowdown that has choked corporate spending and triggered mass layoffs.

Shares of Alphabet, which lost roughly 40% of their value in 2022, were down about 4% in after-hours trading.

Revenue from Google advertising, which includes Search and Youtube, fell to $59.04 billion from $61.24 billion, as advertisers — the biggest contributors to Alphabet’s sales —dialed back spending to cope with persistent inflation, high interest rates and recession fears.

Alphabet’s net income fell to $13.62 billion, or $1.05 per share, from $20.64 billion, or $1.53 per share, a year earlier.

Revenue rose to $76.05 billion in the fourth quarter from $75.33 billion a year ago. Analysts were expecting $76.53 billion, according to IBES data from Refinitiv. —