Google’s finance chief referred to a time in 2008 when expenses were growing faster than revenue, and thus decided to make an internal change in that regard.
Big-tech companies around the world are looking to cut additional costs amid a tight macro environment. Ruth Porat, Google finance chief, said in a companywide email that the company was cutting employee services. In a Friday email titled “Our company-wide OKRs on sustainable savings,” Porat said these are a multi-year effort. In addition, the tech giant is set to cut down on all extra goodies such as fitness classes, tapes, staplers, as well as the frequency of laptop replacements for employees.
Porat said that one of its main objectives is Google “Delivering sustainable savings through improved velocity and efficiency” in 2023. All PAs and functions are working in this direction.
That said, Google has been on a major cost-cutting spree, embarking on one of the biggest cost-cutting measures in two decades. Earlier this year in January 2023, Google said it was eliminating 12,000 jobs, which is 6% of its workforce.
In his email, Porat said the layoffs were “one of the most difficult decisions we had to make as a company”. He further said:
“This work is especially important because of our recent growth, challenging economic environment and the incredible investment opportunities we have to advance technology – particularly in AI”.
He also mentioned the 2008 financial crisis twice in his email. He added:
“Back in 2008, our expenses were growing faster than our revenue. We improved machine utilization, reduced our real estate investment, T&E budget, put our belts on cafes, micro kitchens and mobile phone usage. Strengthened and removed the hybrid vehicle accessory. As we did in 2008, we will look at the data to identify other areas of spending that are not as effective as they should be, or that do not scale to our size.
cut on desktop pc
according to internal documents seen by cnbc, Google is stopping the refresh for desktop PCs, laptops and monitors. It is also changing the frequency with which older equipment is replaced.
Google employees who are not in engineering roles will receive Chromebooks instead of Apple MacBooks. Chromebooks are laptops manufactured by Google that come with Google’s own operating system, Chrome OS.
In a statement to CNBC, a Google spokesperson said the company aims to drive sustainable savings through improved velocity and efficiency. “As part of this, we are making some practical changes to help us remain responsible stewards of our resources while continuing to offer industry-leading perks, benefits and facilities,” the spokesperson said.
Similarly, employees will not be able to demand gadgets from outside, if they are available internally. If they need any gadgets worth more than $1,000, they’ll need a director’s approval “or above.”
“These are mostly minor adjustments. We set a high standard for industry-leading perks, benefits and office amenities, and we will continue to do so in the future. need to be done,” Porat said.
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Bhushan is passionate about Fintech and has a good grasp of understanding the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in the process of continuous learning and keeps motivating himself by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and occasionally explores his culinary skills.
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