"Why Cut Employee Benefits When You Have Money?" Google CEO Recalls "The Humble Beginnings"

"Everyone Must Work Together... Don't Equate Money with Fun," Advice

Sundar Pichai, CEO of Google
Photo by Yonhap News

[Asia Economy Intern Reporter Kim Nayeon] Sundar Pichai, CEO of Google, reminisced, "I remember when Google was small and humble," in response to complaints about the reduction of employee benefits within the company.

According to the US economic media CNBC on the 23rd (local time), CEO Pichai was questioned about the company's cutbacks on employee benefits during last week's all-hands meeting.

There were voices of dissatisfaction regarding the company ordering employees to increase productivity while simultaneously reducing various perks and benefits for them.

One employee asked Pichai, "The company is making record profits and holding massive cash reserves."

In response, CEO Pichai paused briefly and said, "What should I say?" before continuing, "I hope you are all reading the news."

He stated, "We are going through one of the toughest macroeconomic situations in the past decade, and we feel a greater sense of responsibility," adding, "I believe we need to come together to overcome this moment." He emphasized, "It is important for the company to be smart, frugal, and more efficient."

Having joined Google in 2004, he advised, "Not everything is always fun," and "You should not always equate fun with money." He added, "You can enjoy working at a startup where you work hard, but you should not always equate that with money."

According to CNBC, CEO Pichai spent much of the meeting addressing employees' concerns related to cuts in entertainment expenses, productivity management, and potential layoffs.

In the all-hands meeting last July, he also urged improvements in productivity and focus, stating, "There are concerns that our productivity is not at the level required for the number of employees."

Before the COVID-19 pandemic, Google attracted attention in the IT industry for its various in-house perks for employees. However, with the introduction of remote work due to COVID-19, employee benefits in the US IT industry, including Google, have largely disappeared.