Google Workers Lose Fitness Classes, MicroKitchens, Other Perks As Company Cuts Costs

In an effort to boost profitability and reduce operational costs, Google executives have announced their decision to revoke some of the technology company’s highly indulgent employee perks. This decision comes after CEO Sundar Pichai has informed the company that around 12,000 positions will be eliminated because of the persisting macroeconomic instability.

A memo issued by CFO Ruth Porat stated that Google’s “industry-leading perks, benefits, and office amenities” will be scaled back to manage expenses. Google will tailor cafes, microkitchens, and other facilities according to usage patterns. Data will be used to optimize services, closing down some facilities on less busy days and consolidating those with more waste than value. The cost savings will also apply to underused fitness classes and shuttle services.

The memo emphasized that decisions will be based on industry benchmark data and usage metrics, and external procurement and contracting processes will also undergo reforms. Employees’ equipment and technology usage will be monitored closely to further drive down expenses.

Google has recently laid off at least 31 massage therapists and 21 members of the trust and safety department. According to the California Worker Adjustment and Retraining Notification system obtained by The Daily Wire, one “Diversity Manager” and a “Diversity Specialist” were also included in the layoffs. The latter earned between $90,000 and $148,000 annually. The restructuring is in part fueled by the challenging economic environment and the firm’s incredible investment opportunities to push technology forward.

The memo ends with a statement that the plan is to identify areas of spending that aren’t as effective as they should be, or that don’t scale at the size of the company, like they did in 2008. The company vows to inform its employees of any changes affecting their services.

According to a report from Crunchbase, over 130,000 workers have been laid off by technology firms so far in 2023, with around 93,000 positions also nixed last year. Twitter CEO Elon Musk also implemented reforms to amenities and perks offered by the social media company. Doing so, Musk dismissed two-thirds of its employees and stated that Twitter would put an emphasis on engineering and less on design and product management.