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In January this year, Google announced a plan to lay off 12,000 employees, about six percent of its global workforce. The decision came amid an economic downturn that forced mass layoffs across the tech industry. Google CEO Sundar Pichai recently opened up about it. He said the company had to make this tough decision to ensure a better future. However, it could have handled the layoffs better.
Google CEO opens up about the mass layoffs
Almost a year has passed since Google announced the mass layoffs but the decision still appears to be top of mind for employees. The topic was widely discussed during the company’s latest all-hands meeting this Tuesday. Responding to an employee’s question about the impact of the layoffs on the firm’s “growth, P&L, and morale,” Pichai said it had a “clear big impact on morale.”
“It’s reflected in the comments in Googlegeist and the feedback,” the Google CEO continued. Googlegeist is an internal survey of the company’s employees. It measures employee satisfaction across various areas, including leadership, compensation, product focus, diversity, and company values. Pichai’s response suggests employees had strong opinions over the mass layoffs that affected several Google teams.
Pichai added that it was a difficult situation for the company, more so because it “hasn’t had a moment quite like that in 25 years.” If it didn’t act on time, “it would have been a worse decision down the line.” With economic uncertainty looming large, Google had to reduce its workforce to cut its operational costs. “I think it would have made it very difficult in a year like this with such a big shift in the world to create the capacity to invest in areas.”
Google employees also asked Pichai whether the company could have handled the layoffs better than it did. The CEO replied affirmatively. He acknowledged that it wasn’t a good idea to inform all affected employees simultaneously, regardless of time zone. “Clearly, it’s not the right way to do it. I think it’s something we could have done differently for sure,” Pichai said, according to an audio recording of the meeting obtained by Business Insider.
Google has laid off more employees since January
The mass layoffs in January affected Google’s teams across various products and services, including Waze, Fuchsia OS, and the Area 120 incubator. It killed all but three Area 120 projects. The company has made a few more rounds of smaller layoffs since then. Most recently, it fired around 20 employees from the Google Assistant team. The recent layoffs appear to have been handled better by the internet giant.
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