"Even Provided Work MacBooks... Now Google Tightens Belt, No Longer Supplying Tape"

Massive Employee Welfare Cuts... Company-wide 'Saving' Initiative Launched
"Muffins Leftover" Cafe to Close on Mondays and Fridays
Desks Shared, Staplers and Others Not Provided

As the U.S. big tech sector faces widespread workforce reductions, Google is tightening its belt further by scaling back employee benefits.

On the 3rd (local time), according to U.S. financial media CNBC and others, Ruth Porat, Google's Chief Financial Officer (CFO), sent an unusual email to all company employees on the 31st of last month titled "Company-wide OKRs (Objectives and Key Results) for Ongoing Savings."

The email stated, "Our high standards for industry-leading benefits and office amenities will continue," but also noted, "However, some programs need to be adjusted to align with Google's current operating model."

Benefit Reduction Plans Aligned with Three-Day Workweek

[Image source=Yonhap News]

Cafe food, fitness, massage, and transportation programs were designed for employees working five days a week, making adjustments inevitable under current circumstances.

CFO Porat said, "Now that most employees work three days a week, supply and demand no longer match."

She explained that there were instances where a shuttle bus ran with only one passenger, and too many muffins were left uneaten in the cafe.

Therefore, cafes will close on Mondays and Fridays, and some 'underutilized' facilities may be shut down due to the three-day workweek.

Additionally, Google has extended the replacement cycle for laptops and PCs, and unlike before when employees needing new laptops could use Apple MacBooks, they are now generally required to use Google's Chromebooks.

Some employees are asked to share desks, and staples and tape are no longer provided by the company's internal print shop.

CFO Porat referenced the two recessions in 2008, stating, "One of the company's goals this year is to achieve ongoing cost savings," adding, "We are working on this across all areas."

Big Tech's 'Cost-Cutting'... Workforce Reductions and Benefit Cuts Sweep Through

[Photo by Yonhap News]

In January, Google announced it would cut about 12,000 employees, approximately 6% of its workforce. At that time, contracts for more than 24 massage therapists were also terminated.

Furthermore, premium foods such as alcohol, sushi, and meat that had been offered in-house since before the pandemic were reduced, and business trips aimed at fostering employee camaraderie and unity were restricted as part of ongoing cost-cutting efforts.

Earlier, major layoffs occurred at several big tech companies: Amazon cut 18,000 jobs, Meta (Facebook's parent company) 21,000, Microsoft 10,000, and Twitter 3,700. Notably, Meta's layoffs were the largest since its founding in 2004.

Big tech companies aggressively expanded during the COVID-19 pandemic by significantly increasing hiring but are now rushing to downsize amid recession concerns.

Employee benefits are also being continuously reduced.

Meta discontinued free in-house laundry services and subsidies for ride-sharing. The company also eliminated its premium game rooms and removed disposable containers so employees could no longer take food home from the cafeteria.

Twitter halted housing and mobile phone subsidies, childcare support, and all training and self-development programs.

Other big tech firms reportedly eliminated perks such as in-house baristas, paid birthday leave, family outings, and food delivery support for remote workers.