Sundar Pichai, CEO of Alphabet says Google has to run its business more effectively, and the corporation should scale down hiring.
Pichai discussed the problems facing the company as a result of a potential economic catastrophe on Tuesday at the Code Conference in Los Angeles. A couple of Google’s efforts to deal with potential issues include hiring fewer workers and firing some of its current employees.
Sundar Pichai has stated that Google’s primary objective is to become 20% more efficient. Later, Pichai used the conversion of the Google Play Music app to YouTube Music as an illustration of being more effective.
Advertisement Understanding this and reducing the number of decision-makers to two or one can increase efficiency by 20% in areas where there is room for improvement, according to Pichai.
Pichai thinks cutting back on advertising will help the company reach this milestone. At the moment, Google’s primary source of income is advertising, which brings in tens of billions of dollars annually for the corporation. The most recent earnings report, however, indicates that even a huge organization like Google may be severely impacted by economic problems.
Pichai stated at the Code Conference that the more we attempt to comprehend the topic, the more unsure we feel about it. Ad spending, consumer spending, and other expenditures are tied to macroeconomic performance.
Advertisement Amid worries about the economic crisis, Google modifies its hiring strategies. In addition to reducing its advertising expenditures, Google intends to slow down its hiring process. Fiona Clare Cicconi, head of HR at Google, has previously stated that the firm is not presently planning to downsize Google’s overall staff. After making numerous hires over the previous few years, the company may now be obliged to make some layoffs in order to reduce costs after Cicconi mentioned the state of the economy.
By limiting employee travel to only that which is absolutely necessary for business, Google is also reducing expenditures. This information was obtained via emailing a few managers within and is obtained .
Pichai adds that they also want to make sure that people are productive enough to have an influence on the tasks they are working on, even when there are fewer resources available.