'It's Not The Right Way:' Sundar Pichai On Google's Employee Layoffs

New Delhi: One year after Google's massive layoffs, CEO Sundar Pichai has offered a candid reflection on the decision, acknowledging its impact on employees and hinting at potential regrets. Facing a looming recession in early 2023, Google made the difficult choice to cut 12,000 jobs.

The move sent shockwaves through the company and sparked criticism from employees and industry observers. (Also Read: These Banks Changed Loan Interest Rates In December: Check New Rates Here)

Now, a year later, Pichai addressed the issue at an internal all-hands meeting. Responding to an employee's question about the layoffs' impact on growth, profit, and morale, Pichai admitted the company could have handled things differently. (Also Read: Are You Looking For Safe And Tax-Efficient Investment Option? Check Benefits Of Tax-Free Bonds)

"This is difficult for any company to go through," Pichai said, acknowledging the unprecedented nature of the situation. "It became clear if we didn't act, it would have been a worse decision down the line." He argued that inaction could have hindered Google's ability to invest in critical areas during a challenging economic climate.

However, Pichai acknowledged the layoffs' negative consequences. He conceded, "Clearly it's not the right way to do it. I think it's something we could have done differently for sure."

The layoffs impacted various teams across the company, including recruiting, corporate functions, and even some engineering and product groups. The cuts affected Google's global workforce, with immediate implementation for US staff.

Pichai also addressed the issue of employee morale, noting the "clear big impact" reflected in internal feedback channels like Googlegeist. He acknowledged the significant emotional toll the layoffs took on many employees.

Teams throughout the organization are impacted by the job layoffs, including those in charge of recruiting, certain corporate tasks, and several engineering and product teams.  According to Google, the layoffs affect US employees immediately and are widespread.