Google CEO Sundar Pichai speaks on stage in the course of the annual Google I/O builders convention in Mountain View, California, May 8, 2018.
Stephen Lam | Reuters
Google is launching a brand new effort known as “Simplicity Sprint” in an effort to improve effectivity and improve worker focus throughout an unsure financial atmosphere.
The Alphabet firm had its common all-hands final Wednesday, and the tone was considerably pressing as staff expressed concern over layoffs and CEO Sundar Pichai requested staff for enter, in accordance with attendees and associated inside documentation seen by CNBC. Google’s productiveness as an organization isn’t the place it must be even with the headcount it has, Google’s CEO Sundar Pichai informed staff within the assembly.
“I wanted to give some additional context following our earnings results, and ask for your help as well,” Pichai opened, referring to the corporate’s Q2 earnings report on Tuesday. “It’s clear we are facing a challenging macro environment with more uncertainty ahead.”
He added, “There are real concerns that our productivity as a whole is not where it needs to be for the headcount we have.” He requested staff to assist “create a culture that is more mission-focused, more focused on our products, more customer focused. We should think about how we can minimize distractions and really raise the bar on both product excellence and productivity.”
It comes after the company reported its second consecutive quarter of weaker-than-expected earnings and revenue on Tuesday. Revenue growth slowed to 13% in the quarter from 62% a year earlier, when the company was benefiting from the post-pandemic reopening and consumer spending was on the rise. CFO Ruth Porat said she expected some of the challenges to continue in the near-term but the company doesn’t give formal guidance.
It also comes after Pichai recently introduced that it could sluggish the tempo of hiring and investments by means of 2023, asking staff to work “with greater urgency” and “more hunger” than proven “on sunnier days.”
“I would love to get all your help,” Pichai stated in Wednesday’s all-hands assembly, talking to its greater than 170,000 full-time staff.
To that finish, Pichai launched a “Simplicity Sprint” initiative to crowdsource concepts for faster product improvement. “Sprint” is a time period usually utilized in software program improvement and by tech startups to indicate brief, targeted pushes towards a typical purpose.
Pichai stated the corporate is opening the ground for workers to share their concepts by means of August fifteenth by means of an inside survey that asks if administration can attain out if they’ve follow-up questions.
It’s an try for the corporate to “get higher outcomes quicker,” Pichai said during the meeting. The survey, which was viewed by CNBC, shows it may also be used to cut back in certain areas.
Questions in the survey include “What would help you work with greater clarity and efficiency to serve our users and customers? Where should we remove speed bumps to get to better results faster? How do we eliminate waste and stay entrepreneurial and focused as we grow?”
The request also comes as the company tries to ease tensions between employees and executives after an annual “Googlegeist” survey confirmed staffers gave the corporate notably poor marks on pay, promotions and execution.
Highlighting a 7% dip in views about Google’s execution, govt Prabhakar Raghavan on the time wrote “that means we need to bring more attention to busting bureaucracy.” Raghavan is among the most important and influential execs at the company, overseeing search, ads, mapping, and other areas.
In May, the company announced it would overhaul its performance evaluation process that will result in increased salaries while hoping to reduce the bureaucracy around compensation and raises.
In Wednesday’s all-hands meeting, executives addressed employees concern about potential layoffs. One of the top-rated questions was “In light of Sundar’s statement that sharpening Google’s focus ‘means consolidating where investments overlap and streamlining processes,’ should we expect layoffs?”
Pichai handed the query off to Google’s chief folks officer, Fiona Cicconi.
While Cicconi stated the corporate continues to be hiring and does not have plans for layoffs proper now, she didn’t rule it out.
“We’re asking groups to be extra targeted and environment friendly and we’re understanding what which means as an organization as properly. Even although we will’t make certain of the economic system sooner or later, we’re not at present seeking to scale back Google’s general workforce.”
She also said, “I really get that there is some anxiety around this based on what we’re hearing from other companies and what they’re doing and as Sundar mentioned, we’re still hiring for critical roles,” Cicconi said. She asked employees to remember that it’s still the biggest hiring year in the company’s history.
In the second quarter, Alphabet said its headcount rose 21% to 174,014 full-time employees from 144,056 the year prior. However, the company said last month it will slow the pace of hiring and investments through 2023, and CEO Sundar Pichai told employees in a memo, “we’re not proof against financial headwinds.”
Pichai famous the broader financial headwinds a number of occasions. “If you’re looking to what’s happening externally — I’m sure you’re all reading the news— the people in businesses who uses Google products are facing their own challenges right now.”