Google CEO Responds to Accusations That Company is ‘Nickle and Diming’ Workers: ‘We Shouldn’t Always Equate Fun With Money’
Google‘s CEO is doubling down on the company’s decision to “increase efficiency” and cut costs — and he’s less than thrilled about the way employees are handling the news.
Sundar Pichai recently spoke to employees at a company-wide Town Hall meeting where he addressed questions that employees had fielded through Google’s “Simplicity Sprint,” an initiative in which employees were surveyed on three questions on how Google could eliminate waste and improve efficiency internally.
One harsh question asked of Pichaiwas why the company is “nickel and diming” employees and “aggressively” cutting costs despite Google’s “record profits,” according to an audio recording of the meeting obtained by CNBC.
“The fact that you know, we are being a bit more responsible through one of the toughest macroeconomic conditions underway in the past decade, I think it’s important that as a company, we pull together to get through moments like this,” Pichai told employees. “We are committed to taking care our employees. I believe we are just going through a difficult moment macroeconomically. I think it’s important that we as a company align and collaborate. One area of employee anger is the “aggressive costs-cutting” around travel and entertainment expenses.
Google executives have asked employees not to go “overboard” with holiday parties or other celebrations.
” “I remember when Google wasn’t so big and scrappy,” Pichai stated about the cost-cutting measures taken to reduce employee perks and entertainment in the office. “Fun doesn’t always have to be about money. We shouldn’t associate fun with money. You can walk into a hardworking startup and have fun, but it shouldn’t always be equated to money. “
Google missed on Q2 2022 earnings and revenue as reported in July, something Pichai has adamantly accredited to unchangeable macroeconomic conditions that have affected virtually every major industry, like inflation and the potential of a looming recession.
“The more we try to understand the macroeconomic, we feel very uncertain about it,” Pichai said earlier this month during the Tech Code conference in Los Angeles. “We want to ensure that when you have less resources than before, you prioritize the right things and that your employees are productive enough to have an impact on the things that they’re working on. That’s why we’re spending our time on that.” “
Google’s parent company, Alphabet, was down just over 30% in a one-year period as of Monday afternoon.
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