Executives with Google have decided that they will be scaling back a large number fo the tech firm’s infamously lavish perks for their employees in an effort to cut costs and raise profitability.
Sundar Pichai, the CEO of Google, spoke out to tell the company just recently that some 12,000 positions are slated to be cut because of persistent macroeconomic turmoil. One memo sent out by Google CFO Ruth Porat late last week that was obtained by Business Insider went on to state that the “challenging economic environment” and “incredible investment opportunities to drive technology forward” would necessitate changes to the cost structure for the company.
These workforce cuts will therefore come before the restructuring of technology operations for greater maximization of resources, as well as reforms to contracting processes and external procurement. Even as such changes will not “be visible” to the vast majority of employees, the “industry-leading perks, benefits and office amenities” at Google will be rolled back to reduce expenses.
“Cafes, MicroKitchens and other facilities will be tailored to better match how and when they are being used. Decisions will be based on data,” the memo claimed. “For example, where a cafe is seeing a significantly lower volume of use on certain days, we’ll close it on those days and put more focus instead on popular options that are close by. Similarly, we’ll consolidate MicroKitchens in buildings where we’re seeing more waste than value.”
These cost drops will also apply to “some fitness classes and shuttle schedules” based on the extent to which they are utilized. Equipment and technology used by employees will be looked at, permitting Google to “save meaningfully” given the scale of the firm.
The memo went out in the wake of over 31 massage therapists and 21 members of the trust and safety department being fired as part of the ongoing layoffs, as explained in disclosures from the firm to the California Worker Adjustment and Retraining Notification system. One such employee that sported the title of “Diversity Manager” and another with the title of “Diversity Specialist” were also marked on the list in the disclosures. The latter position earned annual compensation ranging between $90,000 and $148,000, as reported by a Glassdoor estimate.
“Just as we did in 2008, we’ll be looking at data to identify other areas of spending that aren’t as effective as they should be, or that don’t scale at our size,” stated the memo. “We will let Googlers know of any other changes that directly impact services they use.”
