Full details on Google trims profits as Big Tech braces for possible recession. Today’s topic is Google, Google
Google, a company known for its lavish corporate perks like free cooking classes and on-site massage treatments, was forced to limit employee travel and cut back on social events ahead of a possible economic downturn.
While Google is still turning a profit, a slowdown in ad spending has led the company’s CEO, Sundar Pichai, to make tough decisions. Aside from cutting employee benefits, Google has also recently reported a paused contract and staff cuts may follow soon.
But Google is not alone. Companies like Goalapple and Amazon everyone has been forced to make spending cuts in recent months to remain competitive, and experts predict the worst may yet be to come.
Google cracks down on employee travel and events
Throughout the 1920s, Google was essentially used as a synonym for corporate profits. Often referred to as an ‘adult playground’ and winner of Fortune’s ‘Best Company to Work For’ title a total of eight times, the company paved the way for benefits in the workplace.
However, while Google’s benefits program is still nothing to sniff at, the company has been forced to join the ranks of other companies and take charge of employee spending.
According to a recent Insights report, an email recently sent to Google’s top managers instructed them to limit employee travel to “business-critical travel.” Social functions, off-site team meetings and travel to in-person events that offer a virtual option will also be banned, according to the leaked source.
A Google spokesperson told Business Insider that they “recently shared guidance on how to take a responsible approach to managing expenses, including travel and events,” and that “different areas and product functions are implementing this in ways that work best for their teams.”
Does Pichai’s plan to ‘simplify the company’ involve layoffs?
Unfortunately, as a national recession looms, the company’s chief executive, Sundar Pichai, is considering cutting back on more than travel and social spending.
According to leaked audio messages from the latest Google meeting, Pichai revealed a plan to “simplify the company” to improve employee productivity. At this year’s Code Conference, Piachi doubled down on him, hinting that product and staff cuts could be made to “improve Google’s efficiency by 20%.”
“Sometimes there are areas to progress [where] you have three people making decisions, understanding that and reducing it to two or one improves efficiency by 20%”. – Google CEO Sundar Pichai
Speaking at the conference, Pichai explained that the company has become “slower” after its workforce skyrocketed.
So, to speed up results as resources remain limited, Google executives are now considering downsizing and merging important apps like YouTube Music and Google Play Music into one product.
How is the rest of the big tech companies responding?
While Google’s stock is still performing fairly well, a sudden drop in ad spending has caused its earnings and revenue to be weaker than expected for the past two quarters in a row.
But Google isn’t the only major tech company that has been hit by rising inflation, rising interest rates and a drop in consumer spending. From massive layoffs and hiring freezes to seismic budget cuts, several big tech companies have been forced to tighten their belts as they prepare for an uncertain future.
Delivery giant Amazon recently laid off a staggering 10,000 employees and was forced to abandon dozens of its existing and planned US facilities, resulting in nearly 25 million square feet of unusable space.
Additionally, Facebook parent company Meta recently announced that it will reduce hiring for most mid- to senior-level positions, following a $3 billion budget cut earlier in the year.
Finally, major companies like Apple, Microsoft and Peloton have all recently made job cuts, with more layoffs expected across the industry in the coming months.
To stay up to date on how big tech is responding to the economic downturn, read our guide to technology company layoffs in 2022.
Google Cuts Profits as Big Tech Braces for Potential Recession (News, Business Tech, Amazing Google) first appeared on jawwaby.club.
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