“If We Didn’t Act…”: Sundar Pichai On Why Google Had To Fire 12,000

‘If We Didn’t Act…’: Sundar Pichai On Why Google Had To Fire 12,000

During the meeting, Google CEO Sundar Pichai stood by the decision of layoffs.

In a recent all-hands meeting, Google and Alphabet CEO Sundar Pichai opened up about the company’s massive 2022 layoffs, acknowledging their impact while defending the decision. He characterized the 12,000 job cuts, representing 6% of Alphabet’s workforce, as a necessary step to navigate economic shifts and position the company for future growth. While acknowledging the toll on affected employees, Mr Pichai argued that the alternative-delaying the layoffs-would have hindered the company’s ability to adapt and invest in critical areas.

A Business Insider report, citing an obtained audio, stated, “At Google’s recent all-hands meeting, CEO Sundar Pichai defended the decision to cut 6% of the workforce on December 12.

Sundar Pichai also admitted that the company could have handled the layoffs in a better manner.

During the meeting, one employee asked, “It has been almost a year since we made the difficult decision to reduce our workforce. What impact did this decision have on our growth, P&L, and morale?”

The layoffs had a “clear, big impact on morale,” Mr Pichai said in response. “It’s reflected in the comments on Googlegeist and the feedback.”

“This is difficult for any company to go through. At Google, we really haven’t had a moment quite like that in 25 years,” Mr Pichai said.

He later added, “It became clear that if we didn’t act, it would have been a worse decision down the line. It would have been a major overhang for the company. 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.”

Mr Pichai added that immediately cutting off access to laid-off employees’ work accounts was “a very, very difficult decision.”
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