Google executives plan to scale back the company's extravagant employee perks in a bid to reduce costs and boost profitability.
In response to the ongoing macroeconomic turmoil, Google CEO Sundar Pichai announced earlier this year that approximately 12,000 positions would be cut.
A recent memo by CFO Ruth Porat, obtained by Business Insider, further revealed that the "challenging economic environment" and the need for "incredible investment opportunities to drive technology forward" require adjustments to Google's cost structure.
The company will not only reduce its workforce but also restructure its technology operations for better resource maximization and make changes to external procurement and contracting processes.
Although most employees won't notice these alterations, the scaling back of "industry-leading perks, benefits, and office amenities" will be evident as Google seeks to lower expenses.
The memo states that cafés and other facilities will be adjusted based on usage data to reduce waste and focus on more popular options.
The memo stated:
Cafes, MicroKitchens and other facilities will be tailored to better match how and when they are being used. Decisions will be based on data.
For example, where a cafe is seeing a significantly lower volume of use on certain days, we’ll close it on those days and put more focus instead on popular options that are close by. Similarly, we’ll consolidate MicroKitchens in buildings where we’re seeing more waste than value.
Cost reductions will also affect some fitness classes and shuttle schedules, as well as the assessment of equipment and technology used by employees, allowing Google to save significantly due to its size.
These measures follow the dismissal of at least 31 massage therapists, 21 members of the trust and safety department, a Diversity Manager, and a Diversity Specialist, as reported by the Daily Wire.
The memo concludes by promising to inform employees of any additional changes impacting the services they use.
This move comes as many prominent tech companies begin to cut headcount, with over 130,000 workers being let go from technology firms in 2023, according to Crunchbase.