Google’s layoffs rankle employees as Big Tech jobs lose some of their cushy cachet
Great frugally Googley… For the second January in a row, Google is kicking the year off with major layoffs. The search giant — known for its employee-centric biz culture with office fitness centers, game rooms, and massages — is laying off hundreds of workers in ad sales and over at YouTube. The news comes a week after Google laid off ~1K staffers without much explanation, and a year after it cut 12K jobs. Employees have responded harshly, calling the cuts “needless” and saying the company’s culture has cratered.
Muted: CEO Sundar Pichai referred to last year’s layoffs as one of the worst moments in Google’s history, acknowledging they tanked morale. Pichai reportedly still hasn’t addressed the recent layoffs internally.
Efficiency 2.0: Tech industry layoffs totaled 260K+ last year, with macro headwinds and pandemic overhiring often cited as reasons.
So far this year, tech cos including Amazon and Discord have cut ~7.5K employees as the quest for “efficiency” continues and companies incorporate more AI.
Less sun’s hitting the Valley… The tech industry is known for high-paying jobs with cushy perks (pet insurance, anyone?). But layoffs, RTO pushes, and office-stapler cuts (yes, really) during tech’s “year of efficiency” have caused tech jobs to slide down the desirability scale. Google has fallen 18 spots to #26 on Glassdoor’s “best places to work” list. Meta and Zoom didn’t place, and 10 fewer tech companies made the list overall than last year.
Cultural decline can be costly too… While Google’s layoffs may lower its costs, they also dent worker morale: 74% of employees who survive layoff rounds see declines in their productivity. And with deep-pocketed rivals like OpenAI looking to poach talent, Google is already trying to retain top staff as worker satisfaction falls. It recently started doling out millions worth of restricted stock to some employees.