Read the memo Google CFO Ruth Porat sent to staff about new cost-cutting, including paring back worker perks
Google is continuing its effort to cut back on spending in 2023. On Friday, CFO Ruth Porat announced to employees that Google wouldIn a memo seen by Insider, Porat told staff that the company planned to close some office cafes during slow periods and shift around fitness classes and shuttle schedules. The company will also replace equipment it provides to employees, like new computers, less frequently.
We've been here before. Back in 2008, our expenses were growing faster than our revenue. We improved machine utilization, narrowed our real estate investments, tightened our belt on T&E budgets, cafes, MicroKitchens and mobile phone usage, and removed the hybrid vehicle subsidy. Since then, we've continued to rebalance based on data about how programs and services are being used.
Improving external procurement is another area where data suggests significant savings — on everything from software to equipment to professional services. As one part of this, we're piloting an improved buying hub that helps teams find suppliers that we've negotiated great rates with. We're adjusting our office services to the new hybrid workweek. Cafes, MicroKitchens and other facilities will be tailored to better match how and when they are being used. Decisions will be based on data. For example, where a cafe is seeing a significantly lower volume of use on certain days, we'll close it on those days and put more focus instead on popular options that are close by.