Google Executives Face Tough Questions from Employees Amidst Cost-Cutting Concerns
At a recent all-hands meeting, Google executives, dressed in Halloween costumes, addressed employee concerns about the company’s future plans for cost-cutting measures. The meeting followed a successful third-quarter earnings report, which sparked a rally in the stock market.
Hiring Slowdown and Retention Concerns
Brian Ong, Vice President of Google Recruiting, acknowledged that the company is hiring fewer people than it did a couple of years ago. He attributed this to changes in geographic hiring and a reduction in open positions. Ong’s comments came in response to questions about retention and promotion opportunities within the company.
Cost-Cutting Priorities
CFO Anat Ashkenazi, who recently succeeded Ruth Porat, emphasized her commitment to pushing for further cost savings across the company. Ashkenazi wore a Reggie Miller jersey to the meeting, while CEO Sundar Pichai sported a humorous “ERROR 404 COSTUME NOT FOUND” t-shirt. Ashkenazi highlighted the need to invest in artificial intelligence infrastructure in 2025, which will require significant cost-cutting measures.
Morale and Layoffs
The meeting comes amid concerns about declining morale within the company, following layoffs, organizational shake-ups, and restructuring efforts. Employees expressed fear about potential future layoffs, possibly after the end of the year. Pichai attempted to reassure employees, stating that the company values its people and has invested in hiring new graduates.
Efficiency and Productivity
Pichai emphasized the importance of finding efficiencies in headcount, citing examples of how teams can achieve more with fewer people. Ashkenazi mentioned that using AI internally can help reduce costs, with 25% of new code now generated by AI. Brian Saluzzo, head of “Core” developers, said that the company is expanding AI-generated code to more complex areas.
Future Plans
Pichai acknowledged that the company is going through an extraordinary period of capital expenditures, but this won’t last forever. He encouraged employees to think about how AI can be used to increase productivity across all functions. Ashkenazi reiterated her commitment to making more cuts, while Pichai emphasized the need for the workforce to strive to do more and help customers around the world.
The meeting marked a tense moment for Google employees, who are bracing for potential changes ahead. As the company navigates the competitive AI landscape, it remains to be seen how these cost-cutting measures will impact its workforce and future success.
Leave a Reply