Google parent Alphabet is slashing more of its lavish worker perks because the tech giant scrambles to chop costs and keep pace in the continued race to develop advanced artificial intelligence.
The corporate will close a few of its “micro-kitchens” that were stocked with free drinks and snacks and shutter cafeterias with lower foot traffic as a part of the efficiency drive, in response to a memo signed by Google CFO Ruth Porat and other top executives.
Google may even trim its spending on company-provided equipment similar to personal laptops, with top brass making “changes to what’s available and the way often it’s replaced,” in response to the memo.
“We wish to be upfront that there are also areas where we’ll realize savings that may impact some services Googlers use at work and beyond,” a handful of Google executives said within the memo.
“We set a high bar for industry-leading perks, advantages and office amenities, and can proceed that into the long run. Nonetheless, some programs have to evolve for a way Google works today,” the memo added.
Google — which for years has treated employees to fancy amenities — recently conducted a round of worldwide layoffs.AP
Apart from the associated fee savings, the executives said the “changes will reduce food waste and be higher for the environment.”
Moreover, Google will look to enhance the efficiency of its servers and data centers. The corporate can also be testing an “improved buying hub” to assist cut down on the associated fee of supplies.
A Google spokesperson confirmed the contents of the memo, which was first obtained by Insider.
Google is seeking to cut costs because it pursues advanced artificial intelligence technology.Bloomberg via Getty Images
“As we’ve publicly stated, we now have an organization goal to make durable savings through improved velocity and efficiency,” Google said in a press release.
“As a part of this, we’re making some practical changes to assist us remain responsible stewards of our resources while continuing to supply industry-leading perks, advantages and amenities.”
The lack of more perks could further hit morale at the corporate, which had long offered employees a number of additional advantages starting from free food to team ski trips to office sleep pods.
Google is dialing back on spending in recent months.Marc Müller/picture-alliance/dpa/AP Images
A 2019 report by Fast Company said Google has greater than 1,300 micro-kitchens in its offices around the globe that “brim with dried seaweed, turkey jerky, kombucha, and other eclectic treats.”
The memo made reference to Google’s recent massive round of about 12,000 layoffs, with executives noting the pink slips are “still being worked through in some countries.”
Google CEO Sundar Pichai has framed the cuts as obligatory as the corporate dedicates more resources to AI development and other core business news.
Google’s micro-kitchens are stocked with free food and drinks.Christian Charisius/picture-alliance/dpa/AP Images
The corporate is attempting to catch as much as Microsoft-backed OpenAi’s ChatGPT AI chatbot, which has wowed the general public with its advanced humanlike responses to queries in recent months.
Google’s chatbot, Bard, has received mixed reviews to date.
As The Post reported in January, Google fired a minimum of 31 onsite massage therapists in California alone as a part of its layoffs last January.
Elsewhere, Google is reportedly requiring employees in its unprofitable Cloud division to share desks and alternate their days within the office.
Last September, Google brass instructed some managers to dial back on spending for teambuilding activities and non-essential travel.
