The era of living high on the hog in Silicon Valley may be coming to an end. The San Fancisco Gatereported that “for years, Google has satisfied its scores of tech workers with world-class perks: high-end computers, speedy shuttles, endless gourmet food and even on-site massages.”
Hungry tech workers are going to have to start footing the bill for the organic salads and vegan sandwiches. They also might have to learn how to use and reuse paper clips.
In separate documents viewed by CNBC, Google said it’s cutting back on fitness classes, staplers, tape and the frequency of laptop replacements for employees.
One of the company’s important objectives for 2023 is to ‘deliver durable savings through improved velocity and efficiency.’ Porat said in the email. ‘All PAs and Functions are working toward this,’ she said, referring to product areas. OKR stands for objectives and key results.
The latest cost-cutting measures come as Alphabet-owned Google continues its most severe era of cost cuts in its almost two decades as a public company. The company said in January that it was eliminating 12,000 jobs, representing about 6% of its workforce, to reckon with slowing sales growth following record head count growth.
Cuts have shown up in other ways. The company declined to pay the remainder of laid-off employees’ maternity and medical leaves, CNBC previously reported.
Earlier in the year, the company initiated a mass layoff of roughly 12,000 employees, making up about 6 percent of its workforce, in a bid to save cash.
Silicon Valley has been rocked financial downturns over the past year, especially in light of the collapse of Big Tech’s favorite bank last month. Business Todaynoted that “Google is not the only tech company that conducted layoffs. Amazon and Meta conducted two rounds of layoffs in a matter of months. The layoffs resulted in 27,000 job cuts in Amazon and 21,000 layoffs in Meta. The economic uncertainty has led to further layoffs in the tech industry and related sectors including media, social media, banking and more.”