Google is cutting back on some employee perks, equipment, and services as it seeks to rein in costs.
According to multiple reports, Google is making cuts in areas like laptop replacements, fitness classes, and snack bars.
- Google finance chief Ruth Porat described the spending cuts in a memo to staff on Friday.
- Just like Google did in 2008,
the company will crunch data to "identify other areas of spending that
aren’t as effective as they should be, or that don’t scale at our size,”
she wrote.
- This includes eliminating some “microkitchens" or snack bars and closing cafeterias on certain days.
- It's also reducing spending on some equipment and supplies, such as staplers and tape.
- Employees who aren't in engineering and require a new laptop will receive a Chromebook rather than having a choice.
- It's
altering how frequently equipment is replaced, including pausing some
replacement laptops, desktop PCs, and monitors for office employees.
- Google parent Alphabet began eliminating 12,000 jobs across the company earlier this year, the largest round of layoffs in its 25-year history.
- At
the time, CEO Sundar Pichai said Alphabet expanded rapidly as a result
of the dramatic growth that occurred during the pandemic.
- Pichai emphasized artificial intelligence as an important area for the company moving forward.
