Google CEO Pichai urged employees in a heated board meeting to not equate fun with money
As Google tried to navigate the unique environment of slowing growth, cost cutting, and employee disagreements over cultural shifts, CEO Sundar Pichai got on the defensive.
At company-wide meetings this week, Pichai faced tough questions from employees related to travel and entertainment budget cuts. Performance management, and possible layoffs, according to an audio recording from CNBC.
In a highly rated question by Google’s internal Dory contributor, Pichai asked why the company is “devaluing its employees” by cutting travel and sales budgets at a time. When “Google has record profits and large cash reserves.” as happened after the Covid pandemic.
“How should I say it?” Pichai began his measured answer.
“Listen, I hope you’re all reading the news, external. The fact that we’ve become a little more responsible in some of the most challenging macroeconomic conditions of the past decade. I think, is important for us to come together as a company to get through times like these. this.
The latest all-hands encounter comes as Alphabet, Meta, and other tech parent Google face various economic challenges. Including a potential recession, rising inflation, rising interest rates, and weak advertising spending. A company known for its high growth and lots of fun perks over the last decade sees what’s on the other side.
In July, Alphabet reported weaker-than-expected second straight quarter earnings and earnings. Third-quarter earnings growth is forecast to fall to single digits from more than 40% a year earlier. Pichai admits that the economy is causing challenges at Google and the growing bureaucracy at Google.
Nonetheless, he sometimes sounded irritated at the meetings, reminding officials that “we don’t always get our macroeconomic choices.”
After the company’s employee numbers increased during the pandemic. CFO Ruth Porath said earlier this year that she expected some of the economic problems to remain. Google announced the next generation of Pixelbook laptops and cut funding for its internal incubator, Area 120.