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Sundar Pichai hints at possible layoffs as he wants to make Google 20 per cent more efficient

Sundar Pichai hints at possible layoffs as he wants to make Google 20 per cent more efficient

Google CEO Sundar Pichai hinted at possible job cuts as he wants to make the company 20 per cent more efficient.

Story highlights
  • Google may freeze hiring process to be more efficient and control financial losses.
  • CEO Sundar Pichai wants to make the company 20 per cent more efficient with fewer resources.
  • He shared the idea of cutting down teams and merging products.

Google is planning to slow down its hiring process to make the organization more efficient and financially stable. Sundar Pichai, the CEO of Google and Alphabet, on Tuesday, affirmed that he wants to make the company 20 per cent more efficient, hinting at possible job cuts.

Google hired a lot of employees after the pandemic and now is dealing with a number of financial issues. Earlier, there were also talks about possible layoffs at Google, as the company itself announced that if the employees will not take their work seriously, there will be serious outcomes. Now the announcement by Pichai is clearly unwrapping Google's plan to reduce employment.

Pichai gave more details about how he is planning to make the company function more effectively amid economic uncertainties and a general slowdown in ad expenditure, of which Google has benefiting the most.

Speaking at the Code Conference in Los Angeles Pichai said, "We want to make sure as a company, when you have fewer resources than before, you are prioritizing all the right things to be working on and your employees are really productive, that they can actually, have an impact on the things they're working on so that's what we are spending our time on."

Pichai also referred to microeconomics and agreed on the fact that the company has become slower after an increase in the employee count. "The more we try to understand macroeconomics, the more we feel very uncertain about it. The macroeconomic performance is correlated to ad spend, consumer spend and so on."

The Google CEO further added, "Across everything we do, we can be slower to make decisions. You look at it end-to-end and figure out how to make the company 20 per cent more productive."

Notably, Pichai has previously suggested reducing the staff. In July, Pichai sent a memo to his employees and mentioned that the company will "slowing down the pace of hiring for the rest of the year". He stated that the company will have to "be more entrepreneurial" and work with "greater urgency, sharper focus, and more hunger than we've shown on sunnier days".

Significantly, Google is not pausing its hiring process entirely. It will be hiring engineering, technical and other critical roles but will "pausing development and re-deploying resources to higher priority areas".

"For the balance of 2022 and 2023, we'll focus our hiring on engineering, technical and other critical roles, and make sure the great talent we do hire is aligned with our long-term priorities," Pichai further stated in the memo.

Published on: Sep 07, 2022, 6:23 PM IST
Posted by: BT Siteadmin, Sep 07, 2022, 6:23 PM IST