- Google employees questioned leadership about cost cuts, layoffs and “morale” issues following the company’s better-than-expected first-quarter earnings report at an all-hands meeting last week,.
- CEO Sundar Pichai and CFO Ruth Porat said the company will likely have fewer layoffs in the second half of 2024.
- “Our priority is to invest in growth,” Porat said.
Google’s business is growing at its fastest rate in two years, but at an all-hands meeting last week with CEO Sundar Pichai and CFO Ruth Porat, employees were more focused on why that performance isn’t translating into higher pay, and how long the company’s cost-cutting measures are going to be in place.
Also read: Google Wallet arrives in India
Internal strife
“We’ve noticed a significant decline in morale, increased distrust and a disconnect between leadership and the workforce,” a comment posted on an internal forum ahead of the meeting read. “How does leadership plan to address these concerns and regain the trust, morale and cohesion that have been foundational to our company’s success?” one Google employee said.
Alphabet’s leadership has faced ongoing challenges in recent years, with employees voicing concerns about post-pandemic return-to-office mandates, the company’s cloud contracts with the military, reduced perks, and significant layoffs. Despite a strong first-quarter earnings report, which included the announcement of a dividend and a $70 billion buyback, internal tension persists. Employees feel a lack of trust and are discontented with tighter deadlines, fewer resources, and limited opportunities for advancement.
Also read: Google incorporates cybersecurity into AI plan
Increasing earning, but still layoffs
Top-rated employee questions raised concerns about stagnant compensation despite the company’s exceptional performance and investments in artificial intelligence. Employees questioned whether lower wages were intentional due to market conditions. CFO Porat acknowledged past mistakes, admitting that expenses had outpaced revenue growth, emphasising the need to prioritise investment in growth. Google executives have been emphasising this theme recently.
