Google to Reduce Hiring Pace, Reallocate Teams to Focus on High-Priority Work

Tech giant Google is reportedly implementing cost-cutting measures including cutting back on free snacks and workout classes for its employees, amidst layoffs due to recession fears. The company has notified its employees that perks will vary based on the needs of each office location and trends seen in each office space. The micro kitchen that provides free snacks like cereal, espresso, and seltzer water will be closed on days that typically have a significantly lower volume. Some fitness class schedules will be shifted depending on how they are being used. Additionally, the company will discontinue spending on personal equipment like laptops and will prioritize work that is of higher priority.

Google CFO Ruth Porat wrote in a memo released by Business Insider that the company will reduce its hiring pace and reallocate teams to focus on higher-priority work. She added that equipment is a significant expense for a company of Google's size and the cost-saving measures will be meaningful. The company also recently informed its employees that some workers would have to share desk space as part of downsizing plans for some of its offices.

Last month, the tech giant reportedly informed its employees via email that fewer of them will be promoted to more senior levels this year compared to the past. The company had confirmed in a letter to employees in January that around 12,000 people would be laid off globally, accounting for more than 6% of the total workforce. The recent cost-cutting measures are expected to help the company in managing its finances and focusing on high-priority work.