Google employees express concerns to executives about decline in morale following earnings report

Google’s business is booming, with its fastest growth rate in two years and a market cap surpassing $2 trillion following a blowout earnings report. However, employees have expressed concerns about why this success isn’t translating into higher pay and the continued implementation of cost-cutting measures.

At an all-hands meeting with CEO Sundar Pichai and CFO Ruth Porat, employees voiced their dissatisfaction with the decline in morale, increased distrust, and disconnect between leadership and the workforce. They questioned the company’s compensation practices, lack of trust, and prioritization of expenses over employee rewards.

Porat acknowledged past mistakes in the company’s handling of expenses and emphasized the need for revenue to outpace costs. She defended the decision to allocate cash towards buybacks and dividends, stating that it does not replace investments in critical areas like artificial intelligence.

Despite its record earnings, Google employees have not seen significant compensation increases, leading to frustration among the workforce. Questions about the company’s priorities, headcount strategy, and ongoing layoffs were also raised at the meeting.

Pichai addressed concerns about the company’s headcount strategy, stating that Google is going through a period of transition that includes cost-cutting and efficiency drives. He reassured employees that the company is investing in its major priorities and will continue to hire in those areas.

While layoffs are expected to continue in the first half of 2024, Pichai mentioned that the second half of the year will see a smaller scale of job cuts. The company remains focused on managing headcount growth and making disciplined choices regarding investments in new projects.

Overall, Google’s leadership acknowledged the challenges faced by employees and committed to addressing their concerns to regain trust, morale, and cohesion within the company. As Google continues to navigate its growth and transition, employees can expect changes in compensation, hiring practices, and a more transparent communication from leadership.

Back To Top