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This year’s Halloween will live long in the memory of Google employees who watched their senior execs respond to questions about the possibility of cost-cutting measures, including layoffs, while dressed in costumes.
Among those to answer anxious workers were CEO Sundar Pichai, who donned a t-shirt that said “ERROR 404 COSTUME NOT FOUND,” and CFO Anat Ashkenazi, who wore a Reggie Miller (Indian Pacers) jersey.
According to reports on the meeting, Google leadership – also including VP of Recruiting Brian Ong – were quizzed on the possibility of headcount reduction.
Google CEO: Headcount efficiencies doesn’t necessarily mean layoffs
Employees noted concerns after Ashkenazi stated her intention to “push a little further” on cost savings in an earnings call with investors the day before. Pichai responded, explaining “If we are making companywide decisions, we’ll definitely let you know.”
“What exactly was meant by the comments on further efficiencies in headcount?” another worker asked during the all-hands. Ashkenazi did not clarify her comments directly but said employees are “one of the most important assets we have.”
Pichai further clarified that layoffs are not the only way to find opportunities for cost efficiency.
“If you have to do something new and it’s going to take 10 people, if you can find a way to do it with eight people by making smart trade-offs somewhere and aligning teams better, that’s an example of finding efficiencies in headcount as well,” he explained, suggesting restructuring could be an alternative to job cuts.
Pichai added during the meeting that the company’s leadership team may not always be the one determining layoffs, as local team requirements could necessitate job cuts. “It’s not like all of these decisions are centrally done at a company level,” he said. “And so, at the scale of our company, there could be moments where there are small groups of people impacted.”
Google reevaluates hiring during AI flux
Google execs also spoke on changes to company hiring, at a time when many tech employers are reallocating significant resources toward investment in artificial intelligence.
“There is a reality to it,” said Brian Ong, VP of Google Recruiting, as reported by CNBC. “We are hiring less than we did a couple of years ago.”
Changes to hiring needs across geographies have been driven by tight economic conditions and the company’s decision to spend heavily on expanding its AI operations.
But Pichai said that while the company has gone big on hiring for AI at the expense of other teams, this balance will change over time.
“We are going through an extraordinary period of capex advancement,” he explained. “When you have these technology shifts, at the earlier stages, you invest disproportionately and then the curve gets better and that’s the transition as an industry we are working through.”
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Ashkenazi had also stated in the earnings call the day before that AI could help the company save money on operations. Pichai followed up on the comments, stating: “In this transition moment, across all functions, everywhere in the company, it’s worth challenging us to think where we can use AI to be more productive.”
He called on Googlers to “strive to do more” in 2025 and beyond, as a part of the push for greater efficiency at the company.
All-hands meeting offers accountability as employees seek improved exec communications
Google’s CEO also noted how tricky the meetings – during which employees share questions and the company’s leadership respond to the most popular queries – can be.
“I was telling Anat yesterday, earnings calls are a piece of cake compared to [the meeting] the next day,” he told the Googlers.
Although it was a touch awkward that the executive team was responding to such serious questions while in costume, the meeting represents a valuable window of accountability and transparency from Google’s leadership.
Research continues to show US employees are frustrated with the lack of authentic and transparent communication from their company leaders.
In a 2023 GE and Ipsos poll, 40% of entry-level employees said they felt their CEO didn’t “walk the walk” with communications; and while 85% of leaders said they felt company executives effectively communicated company values, only 62% of employees agreed.
