Google tightens belt, implements cost-cutting measures like removing snack bars and staplers

04/07/2023 / By Ramon Tomey

Search engine giant Google has begun implementing cost-cutting measures, as confirmed by the company’s chief financial officer.

Google CFO Ruth Porat broke the news in a March 31 email sent to all employees of the Mountain View, California-based technology firm. Her email said the cost-cutting measures aimed to “deliver durable savings through improved velocity and efficiency.”

The measures Porat cited in her email included the removal of some snack bars or “microkitchens” and the closure of cafeterias on days with modest traffic.

Internal documents viewed by CNBC expounded on the measures Porat referenced in her email. Google employees not in engineering roles who need a new laptop will receive a Chromebook by default. According to a document, the shift “provides the best opportunity across all of [Google’s] managed devices to prevent external compromise.”

Another document mentioned reductions to existing employee perks that were originally designed for when staff members reported to the office five days a week. It stated that cafeterias may be shuttered on Mondays and Fridays, and “under-utilized” facilities may be permanently shut down.

“Now that most of us are in three days a week, we’ve noticed our supply/demand ratios are a bit out of sync,” said the document. “We’ve baked too many muffins on a Monday, seen [company buses] run with just one passenger and offered yoga classes on a Friday afternoon when folks are more likely to be working from home.”

Even office supplies were not spared, according to a third directive seen by CNBC. The document from a Google office in San Francisco said staplers and tape dispensers are no longer being provided to print stations as part of “a cost-effectiveness initiative.”

“We have been asked to pull all tape/dispensers throughout the building. If you need a stapler or take, the receptionist desk has them to borrow.”

However, a Google spokesperson quickly debunked the directive about staplers and sticky tape: “Staplers and tape continue to be provided to print stations. Any internal messages that claim otherwise are misinformed.”

Layoffs also part of Google’s cost-cutting

“We set a high bar for industry-leading perks, benefits and office amenities – and we will continue that into the future,” Porat wrote in her email. “However, some programs need to evolve for how Google works today.”

In January, Google announced that it would lay 0ff 12,000 jobs, about six percent of its workforce. The job cuts were part of moves to address slow sales growth after a rise in headcount.

Porat described the January layoffs as among “the hardest decisions we’ve had to make as a company” in her email. But aside from layoffs, cost-cutting measures have also shown up in other forms. A previous CNBC report said Google declined to pay the remainder of laid-off employees’ maternity and sick leaves.

The problem is not limited to Google, however. Earlier in March, Meta Platforms – the parent company of Facebook and Instagram – announced about 10,000 job cuts in the coming months as part of its “year of efficiency.” The company helmed by Mark Zuckerberg had earlier laid off about 11,000 employees last fall. (Related: Mark Zuckerberg announces plan to cut 10,000 Meta employees in the next 2 months.)

“We’ve been here before. Back in 2008, our expenses were growing faster than our revenue. We improved machine utilization; narrowed our real estate investments; tightened our belt on [travel and expense] budgets, cafes, micro kitchens and mobile phone usage and removed the hybrid vehicle subsidiary,” Porat wrote.

“Just as we did in 2008, we’ll be looking at data to identify other areas of spending that aren’t as effective as they should be or that don’t scale at our size.”

TechGiants.news has more stories about cost-cutting measures in various Big Tech companies.

Watch this edition of the “Rudyk Report” that discusses more layoffs in the tech industry.

This video is from the Rudyk Report channel on Brighteon.com.