In an attempt to reduce expenses and improve profitability, Google officials will reduce several of the technology firm’s famously lavish employee perks.
Google CEO Sundar Pichai announced earlier this year that 12,000 jobs would be cut due to ongoing macroeconomic upheaval. A letter sent by Ruth Porat, Google CFO, on Friday and acquired by Business Insider stated that the company’s expense structure would need to alter due to the “challenging economic situation” and “incredible opportunities for investment to drive technology forward.”
Workforce reductions will thus come before the reorganizing tech operations to max resources, as well as changes to external buying and contractual processes. Even though such adjustments will not be “visible” to most workers, Google’s “industry-leading perks, office amenities and benefits” will be decreased to save money.
“Cafés, MicroKitchens, as well as other facilities will be tailored to when and how they are used. Data will be used to make decisions,” according to the letter. “For example, if a cafe has a significantly lower use on certain days, we will close it on those days and then focus instead on popular nearby options. Similarly, in structures where there is more waste than value, we will combine MicroKitchens.”
The expense cuts will also extend to “some fitness classes,” depending on how much they are used. Employee equipment and technology will also be evaluated, allowing Google to “save meaningfully” given the company’s scale.
According to reports the company made with the California Worker Adjustment and Retraining Notification system acquired by The Daily Wire, at least 31 massage therapists and 21 employees of the trust and safety department were laid off as part of the cutbacks. There was also one employee with the title “Diversity Manager” and another with the title “Diversity Specialist” mentioned in the disclosures; the latter job made yearly pay varying from $90,000 to $148,000, according to Glassdoor estimates.
“Just like we did in 2008,” the memo continued, “we will be looking at data to find other areas of spending that are not as effective as they should be, or that do not scale at our size. We will notify Googlers of any other changes that have a direct impact on the services they use.”
Most major technology firms began to decrease headcount as the increased demand from consumers that resulted from the recession caused by the lockdown began to decline. According to Crunchbase, over 130,000 employees have been laid off from tech firms thus far in 2023, despite businesses eliminating approximately 93,000 jobs last year.
