It seems like Google is not satisfied with the recent laying off of 12,000 employees to reduce spending costs, as it is looking to implement more cost-saving options, which include reductions in equipment expenses, supplies, and some employee services, according to a new report from CNBC.
Last Friday, the company’s Chief Financial Officer Ruth Porat in a rare recent company-wide email as well as through a number of internal memos told its employees that Google is making cuts to employee services in an effort to reduce expenses.
“These are big, multi-year efforts,” Porat wrote in the email to the employees.
One of the company’s important goals for 2023 is to “deliver durable savings through improved velocity and efficiency,” she said in the email. “All PAs and Functions are working toward this,” Porat said, referring to product areas.
Porat explained how Google is cutting back on everything from reducing fitness classes for employees to basic office supplies from tape and staplers or paper clips while decreasing the frequency of replacing employee laptops.
“We have been asked to pull all tape/dispensers throughout the building,” one recent note sent to a San Francisco office reportedly stated as part of a cost-effectiveness initiative. “If you need a stapler or tape, the receptionist desk has them to borrow.”
Not just this, Porat also told employees in the countrywide email that those who require a new laptop and are not working on engineering duties would now get a Chromebook by default. Previously, Google employees were offered other laptops, including new Apple MacBooks.
Google cited replacing Apple MacBooks with Chromebooks as a way of enhancing internal security. “It also provides the best opportunity across all of our managed devices to prevent external compromise,” read one of the documents sent regarding laptop changes.
In addition, the search giant is also pausing refreshes for laptops, desktop PCs, and monitors at its offices. It is also “changing how often equipment is replaced,” according to internal documents viewed by CNBC.
Further, an employee can also no longer expense the cost of a new smartphone, if it offers them one for use internally. Employees will need to get prior approval from the director “or above”, if they need an accessory that costs more than $1,000 and will be allowed to do so if it is not available internally.
Additionally, Google employee services like food, fitness, massage and transportation programs also received the cut, which was all introduced when employees were coming into the office five days a week.
As a result, Google has decided to close cafes on Mondays and Fridays and shut down some facilities that are “underutilized” due to hybrid schedules, i.e. employees working from the office three days a week.
“Now that most of us are in 3 days a week, we’ve noticed our supply/demand ratios are a bit out of sync: We’ve baked too many muffins on a Monday, seen GBuses run with just one passenger, and offered yoga classes on a Friday afternoon when folks are more likely to be working from home,” the document stated.
This is not the first time that Google has implemented cost-saving measures. Previously, the company refused to pay the remaining laid-off employees’ maternity and medical leaves. Also, recently Google informed employees that some workers would require to rotate and share desk space amid office downsizing.
