Alphabet Inc’s CEO has hinted at potential job losses as he wants the company to become “20 percent more efficient” after years of rapid hiring.
Sundar Pichai, 50, spoke at Code Conference in Los Angeles Tuesday night, where he said he wants to make the tech giant, which owns Google, more efficient amid economic uncertainty brought on by decades-high inflation and a slowdown in ad spending. according to CNBC.
In July, Alphabet said in a regulatory filing that it will slow the pace of hiring for the rest of the year due to decades of high inflation.
A number of tech companies, including Uber, Meta and Twitter, have scaled back hiring and dumped contractor positions, while others, such as Netflix, have laid off full-time staff.
Pichai also told the conference on Tuesday that the company has “slowed down” in productivity after its workforce has exploded over the past five years, and that one way to make it more efficient was to sell competing products, such as YouTube Music and Google Play. Music, merge.
Over the past five years, Google has grown from just under 100,000 full-time employees to over 150,000. In 2017, there were 80,110 full-time employees, 98,771 in 2018, 118,899 in 2019, 135,301 in 2020 and 156,500 in 2021, according to Macro trends.
In total, Google added 76,390 jobs in five years, but Pichai now says the job increase has led to less efficiency.
“In everything we do, we can make decisions more slowly,” he said.
‘Sometimes there are areas to make progress’ [where] you have three people making decisions, understanding that, and reducing it to two or one increases efficiency by 20 percent.’
Sundar Pichai, 50, said at Code Conference (pictured) that he plans to make Google more efficient by limiting the number of people who have to make decisions in anticipation of a slowdown in ad spend
Pichai added that when the company has fewer resources, it needs to make sure it prioritizes the “right things to work on” and that employees are “more productive.”
While not explicitly mentioning layoffs, the company said in July that it “couldn’t be sure of the economy going forward” but that it “wasn’t currently looking to reduce Google’s overall workforce.”
At Code Conference, host Kara Swisher asked him about the “rest and vest” employees — usually older workers with a light workload, as depicted on the HBO show Silicon Valley. But the CEO said it wasn’t something he saw among his employees.
In the past five years, Google has created more than 76,000 jobs. While Pichai made no explicit mention of layoffs, the company addressed the rumor of potential budget cuts in July, stating that it “couldn’t be sure of the economy going forward” but that it was “not currently looking to reduce Google’s total workforce.”
Pichai told employees in July that the company “needs to be more entrepreneurial” and will have to operate with “greater urgency, sharper focus and more hunger than we’ve shown on sunnier days,” according to an internal memo seen by The edge.
He said the move will mean halting development and redeploying resources to higher-priority areas.
Google fell short in its earnings report in the second quarter. The company’s growth in the second quarter was 13 percent. In the second quarter of 2021, growth was around 62 percent as the world began to emerge from the Covid-19 lockdown again.
The hint of job loss comes as Meta boss Mark Zuckerberg ordered managers to… evicting coasting workers amid a devastating decline in value.
An internal memo sent in July by Maher Saba, Facebook’s chief of engineering, instructed tech executives to report anyone who “needs support” to human resourcesy, according to the Information.
“If a direct subordinate is dying out or underperforming, they’re not the ones we need; they are abandoning this company,” Saba wrote in the scathing message. “As a manager, you can’t allow someone to be just neutral or negative for Meta.”
The move marks a dramatic change of tone for the social media giant — recently renamed Meta — which in its early days was known for setting the tone for the laid-back and laid-back corporate attitude that characterized Silicon Valley.
Other companies, such as Mark Zuckerberg’s Meta, are also facing budget cuts, with the billionaire telling his manager to cut “dead weight”
“If I had to bet, I’d say this might be one of the worst recessions we’ve seen in recent history,” Mark Zuckerberg told employees during a company visit to employees in late June.
The 38-year-old Facebook founder said during the call that he expected to reduce technician hiring plans by at least 30 percent as the company seeks ways to cut costs, Reuters said.
During the call, Zuckerberg indicated that one of those cost-cutting methods would be to eradicate dead weight.
“Realistically, there are probably a lot of people at the company who shouldn’t be here,” he said.
It wasn’t immediately clear why Zuckerberg believed there was dead weight in the company’s workforce.