Google and Alphabet CEO Sundar Pichai recently shed light on the significant downsizing the tech giant underwent in 2022, involving approximately 12,000 job cuts. This marked the most extensive layoff in the history of Alphabet.
Defending the Decision:
During a recent all-hands meeting, Sundar Pichai defended the decision to reduce the company’s workforce by six percent in 2022. The CEO addressed concerns and explained the rationale behind the unprecedented move.
Employee Impact:
Addressing a question during the meeting about the aftermath of the layoffs on growth, profit and loss (P&L), and employee morale, Pichai acknowledged a substantial impact on employee morale. Describing it as one of the company’s “most difficult decisions,” he highlighted that Google hadn’t faced a moment like this in 25 years.
Difficult but Necessary:
Sundar Pichai characterized the decision as both difficult and necessary. He emphasized that not making those cuts would have led to more significant challenges down the line, posing a potential impediment to the company’s capacity to invest in critical areas amid a rapidly shifting global landscape.
Avoiding Immediate Access Cuts:
While defending the overall decision, Pichai admitted that the immediate termination of all laid-off personnel and simultaneous notifications, irrespective of time zones, was a “bad idea.” He acknowledged that handling the process differently could have been more considerate.
In addressing the aftermath of the significant layoff, Sundar Pichai emphasized the necessity of the decision for the company’s long-term health. Despite defending the move, he acknowledged the need for more thoughtful approaches in personnel management, particularly in communication and handling of such impactful decisions.
