In a rare companywide email for Google, the company’s CFO Ruth Porath announced the company’s goal to reduce employee service costs under the guise of “delivering durable savings through improved velocity and efficiency,” writes CNBC.
Porath said the company aims to achieve that goal over the next few years. She stressed that 2023 would be crucial in achieving those goals, citing 2008 as an example when Google had to implement similar cost-cutting measures.
According to separate documents seen by CNBC, some of the measures include cutting back on fitness classes, providing staplers, duct tape and reducing the frequency of laptop replacements for employees.
As part of the hardware transition, Google is suspending updates for laptops, desktops, and monitors, as well as changing the frequency of hardware replacements. In the future, Googlers who aren’t engineers but need a new laptop will default to Chromebooks, instead of a wide range of offerings, including Apple MacBooks, previously available to employees.
In addition, employees will no longer be able to spend money on smartphones, if they are available in the company. If they need an accessory worth more than $1,000 that is not in stock at the company, employees will need to get permission from the director “or above.”
As part of a cost-saving initiative, Google has already stopped handing out staplers and tape across the company. If necessary, employees must collect them at the administrator’s desk. Google also reportedly refused to pay the fired employees the rest of their previously paid maternity and medical leave.
The cost-cutting measures come as Alphabet-owned Google continues its biggest cost-cutting drive in its nearly two decades as a public company. Google announced in January that it would cut 12,000 jobs, or about 6% of its workforce, as sales growth slowed after record headcount growth in 2020 and 2021.
In her email, Porath acknowledges that the layoffs were “the hardest decisions we’ve had to make as a company.” Despite the cost-cutting measures, Google says it will continue to offer industry-leading employee perks, benefits and amenities.