During a recent all-hands meeting at Google, employees voiced their frustrations over cost-cutting measures and lack of pay raises, leading to a heated discussion with CEO Sundar Pichai and CFO Ruth Porat. Despite the company’s strong financial performance, employees criticized the lack of meaningful compensation increases and expressed concerns about declining morale and disconnect with leadership.
Porat admitted to management errors in handling investments, while Pichai acknowledged that Google had over-hired during the pandemic, which resulted in layoffs and job shifts abroad to Mexico and India. The workforce has grown by 22% in 2022, leading to tighter deadlines and fewer resources for employees to complete their tasks effectively.
In response to the criticism, Google announced its first-ever dividend and a $70 billion stock buyback, causing a surge in the share price. Google Cloud revenue also saw a significant increase of 28% in the first quarter, driven by AI tools on cloud services. Alphabet’s capital expenditures were reported to be $12 billion, with expectations that they will remain high as the company continues to invest in AI offerings.
However, employees highlighted a disconnect between the stock buybacks and reinvesting in AI and employee training. This has raised concerns about the company’s priorities and its commitment to supporting its workforce in a meaningful way.
Overall, Google employees are expressing their frustrations and concerns about the company’s direction and how it prioritizes its investments. As the tech giant continues to grow and expand its offerings, it will be crucial for management to address these issues and ensure that employees feel valued and supported in their roles.
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