$2 billion and counting: The ‘cost’ of job cuts, other measures for Google – Times of India

Like many big tech companies, Google announced large-scale layoffs in January 2023. As many as 12,000 employees were fired by Google. Sundar Pichai, CEO, Google said “These are important moments to sharpen our focus, reengineer our cost base, and direct our talent and capital to our highest priorities.” Not just layoffs, but Google has gone on a cost-cutting spree across its offices. Google’s quarterly results have revealed the true cost of the layoffs and reducing office space.
In its quarterly earnings release, Google revealed that the company spent $2.6 billion in charges related to reductions in the workforce and office space.

Two billion and counting

Google said that since the layoffs were announced in January, the impact can be seen in the first quarter of 2023. “We recorded employee severance and related charges of $2.0 billion, representing the majority of expected costs associated with this action,” said the company.
Google also decided to take several stops to “optimise” its global office space. As per the quarterly earnings release, Google “recorded charges related to office space reductions of $564 million in the first quarter of 2023.” That’s not it as Google said that it might cost the company more in the short-term as it continues to evaluate its real estate needs across the world.
The tech giant has cut down on some services for employees. For instance, some employees who were earlier eligible to Apple MacBooks will mandatorily have to use Chromebooks. Some other perks were also slashed and employees were also asked to share desks in a few Google offices.
On the quarterly results, Pichai said, “We are pleased with our business performance in the first quarter, with Search performing well and momentum in Cloud. We introduced important product updates anchored in deep computer science and AI.”