- Googlers have been questioning executives about compensation, CNBC reported.
- In April, Alphabet reported triumphant first-quarter earnings that surpassed analysts’ estimates.
- One employee said he noticed “a significant decline in morale.”
Google executives have faced tough questions from employees after the company reported extraordinary profits last month.
In April, Alphabet reported triumphant first-quarter earnings which surpassed analysts’ estimates and sent shares soaring. The company reported an annual revenue increase of around 15% and issued its first dividend of 20 cents per share.
Googlers wanted to know why increased revenue wasn’t leading to higher wages or an end to some of the company’s cost-cutting measures, CNBC reported.
A comment posted on an internal forum before the meeting said there had been “a significant decline in morale, increased mistrust and a disconnect between leadership and the workforce.”
Another top-rated question reviewed by CNBC asked why Googlers didn’t receive “significant pay increases” despite the company’s “stellar performance and record earnings.”
In an all-hands meeting with Alphabet CEO Sundar Pichai and other top executives, Google CFO Ruth Porat reportedly addressed some of the workers’ comments. She said the company’s priority was to “invest in growth,” noting that “revenues should grow faster than expenses,” the report said.
Pichai reportedly joked about holding a “Finance 101” TED Talk for employees.
A Google spokesperson told Business Insider that most employees would receive a pay increase this year, which includes a salary increase, equity grant and full bonus.
The spokesperson added that Google is investing responsibly in the company’s biggest priorities, which means continuing to hire for critical roles across the company.
Google executives have been fielding difficult and critical questions from employees over the past year.
The company laid off around 12,000 people in 2023 and began 2024 with thousands of layoffs from key engineering and hardware teams.
The continued layoffs have angered employees — with some lashing out at leadership. Following a series of layoffs in January, some Googlers publicly attacked what they described as “glassy-eyed leaders” and protests organized in response.
During the all-hands meeting, Pichai told workers that the company had hired too many employees during the pandemic, according to CNBC.
“We hired a lot of employees and, from then on, we had a course correction,” he said.
On February 28, Axel Springer, the parent company of Business Insider, joined 31 other media groups and filed a $2.3 billion lawsuit against Google in Dutch court, alleging losses suffered due to Google’s advertising practices. company.
