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Google cuts employee perks; No more free snacks and workout classes
5 Apr, 2023 / 01:20 AM / Google

Source: http://www.mashable.com

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Google employees were notified that the perks will vary based on the office location needs, and trends seen in each office space.

In the aftermath of the January layoffs that saw 12,000 employees leave the company, Google has reportedly implemented additional cost-cutting measures aimed at reducing spending. According to CNBC, the tech giant has informed its remaining staff of these measures through a series of company-wide emails and memos. Among the cutbacks are reductions in equipment and supplies, as well as some company services.

The memo sent to a San Francisco office stated that employees would have to cut back on items such as staplers and tape. Additionally, employees who are not engaged in engineering duties and require a new laptop will now receive a Chromebook by default, as opposed to the previously offered MacBook.

If an employee at Google already has a smartphone to use for work, they may no longer claim the cost of buying a new one as an office expense. An employee who needs a $1,000 accessory must now acquire prior approval, and if none is available internally.

Other cost-saving measures include a reduction in expenses for employee services such as food and transportation. This is partial because many workers now only come into the office three days a week.

In addition to the cutbacks, Google is also reducing some of its existing employee perks. Free snacks and workout classes are among the perks being scaled back. The company's CFO, Ruth Porat, noted that the perks would vary based on the office location and trends seen in each office space. Google's internal memo states that some company cafes could close on Mondays and Fridays.

The company's micro kitchen, where employees can help themselves to free refreshments including breakfast, espresso, and seltzer water, will be shuttered on days with unusually low traffic.

The memo further stated that funds would be redirected to work that is of a higher priority, with personal equipment like laptops being discontinued. Porat noted that this move would help the company save significantly as the equipment is a significant expense for a company of Google's size.

Google is also slowing down on hiring and moving teams around so they can work on more important tasks. Some workers will have to share desks, and some of the company's offices will get smaller.

While some of these measures may be viewed as a reduction in employee perks, the company's CFO notes that they are necessary to redirect funds to higher-priority work. With these measures in place, Google hopes to maintain its position as a leading tech company while also ensuring its long-term financial stability.