‘Not the right way’: Google CEO Sundar Pichai says layoffs created a big impact on morale

At the start of 2023, Alphabet, the parent company of Google, found itself amidst a tumultuous period as it took the unprecedented step of terminating 12,000 employees. The decision, attributed to looming recession fears at the time, sent shockwaves through the workforce and drew attention to the tech giant's strategic choices.

According to a report from Business Insider, CEO Sundar Pichai fielded questions regarding this controversial move during an all-hands meeting held on Tuesday. One employee, reportedly seeking clarity, queried Pichai on the impact of the decision on growth, profit and loss, and overall morale within the company.

In response, the 51-year-old CEO acknowledged the gravity of the situation, expressing that Google had not encountered such a pivotal moment in its 25-year history. Pichai conceded that alternative approaches could have been explored to navigate the circumstances.

"This has been a challenging time for any organisation. At Google, we have not faced a comparable juncture in 25 years. We recognised that if we had not taken action, it would have led to more adverse outcomes down the line. It would have lingered as a significant burden on the company, particularly amidst the global shifts we've witnessed this year," Pichai remarked.

Acknowledging the room for improvement in their approach, Pichai admitted, "Clearly it's not the right way to do it. I think it's something we could have done differently for sure."

Moreover, Pichai shed light on the substantial blow to morale triggered by these terminations, citing the impact evident in employee feedback channels like "Googlegeist."

The wide-ranging job cuts traversed various sectors within the company, affecting recruitment, corporate functions, engineering, and product teams. Notably, the ramifications were global, immediately impacting US-based staff as communicated by Google.

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