Google, led by CEO Sundar Pichai, is on the verge of reaching a valuation of $2 trillion, but despite better-than-expected quarterly earnings, there's been a decline in morale among employees due to cost-cutting measures and a lack of pay raises across the company. At a recent all-hands meeting, employees directly addressed their concerns with Pichai and CFO Ruth Porat.
Employees voiced their worries about declining morale and a perceived disconnect between leadership and the workforce. One employee mentioned, "We have noticed a significant decline in morale, increased distrust, and a disconnect between leadership and the workforce." Another questioned how leadership plans to address these concerns and regain trust, morale, and cohesion within the company.
In response to concerns about compensation not reflecting the company's success, Pichai acknowledged the issue, describing it as "an iterative process" and emphasizing leadership's responsibility in addressing these concerns. He attributed the decline in morale partly to the company's rapid expansion and subsequent course correction.
Over the past few years, Alphabet, Google's parent company, has implemented various changes affecting employees, including mandating a return to the office post-pandemic and reducing perks such as free massages and fitness centers. The company has also scaled back on food offerings and limited employee travel.
Reports suggest that Google recently terminated over 200 employees from teams working on Python, Flutter, and Dart projects, with around 50 engineering positions cut in Sunnyvale, California. Questions were raised at the meeting about the company's headcount strategy in light of positive earnings and recent layoffs.
Pichai explained that Google is going through a period of transition, aiming to cut expenses and drive efficiencies while increasing expenses moderately. He emphasized the importance of managing headcount growth and reallocating resources efficiently, signaling a shift in approach towards long-term efficiency rather than reflexively expanding headcount.
