Dark clouds continue to loom overhead for Google workers despite the tech giant enjoying a streak of good fortune over the past few months.

During an all-hands meeting, Google CEO Sundar Pichai and CFO Ruth Porat were bombarded with questions from employees, who were concerned about current cost-cutting measures and the lack of pay rises even though the company has been doing well financially.

At a time when many of its competitors are struggling, Google is experiencing the fastest growth rate over the past two years. The company even saw the biggest rally in Alphabet shares in 9 years following the release of its April earnings report. This pushed Google’s market cap beyond USD 2 trillion.

However, things are still not looking great for Google workers who felt that they were being left behind by the company. One employee took to the company’s internal forum to make their feelings heard.

“We’ve noticed a significant decline in morale, increased distrust and a disconnect between leadership and the workforce,” the worker wrote.

“How does leadership plan to address these concerns and regain the trust, morale and cohesion that have been foundational to our company’s success?”

Trouble in paradise

This is not the first time that Google staffers voiced their disappointment in the company’s leadership. Workers have criticised the tech giant for its high-handed approach to return-to-office mandates following Covid lockdowns, as well as its entry into cloud and AI agreements with the military.

Google did not do themselves a favour in the eyes of its workers by slashing thousands of jobs and reducing employee perks as part of cost cutting measures.

Many workers also felt that Google management does not trust them, often forcing them to work on tighter deadlines even though they are not given enough resources for the job. Others complained about the lack of opportunities to advance in their careers within the company.

During the internal meeting, one staffer asked management why they have not received any pay increases despite Google’s recent successes.

“Despite the company’s stellar performance and record earnings, many Googlers have not received meaningful compensation increases” the comment read.

“When will employee compensation fairly reflect the company’s success and is there a conscious decision to keep wages lower due to a cooling employment market?”

Meanwhile, another employee questioned the company’s priorities, particularly its considerable investments in AI.

“To many people, there’s a clear disconnect between spending billions on stock buybacks and dividends and re-investing in AI and retraining critical Googlers,” the worker wrote.

Google’s business woes

In response to staff questions, CFO Porat said Google is prioritising its investment in growth, claiming that the company’s revenue should outpace its expenses.

Porat also addressed workers’ concerns about the company’s past mistakes, especially when it comes to investments.

“The problem is a couple of years ago — two years ago, to be precise — we actually got that upside down and expenses started growing faster than revenues,” she said.

“The problem with that is it’s not sustainable.”

CEO Pichai, who took over answering employee questions, admitted that Google’s “leadership has a lot of responsibility here” and that “it’s an iterative process.”

The Google chief also talked about the company’s staffing problems following the Covid pandemic.

“We hired a lot of employees and from there, we have had course correction,” he said.

By the end of 2022, Alphabet had more than 190,000 full-time employees, which is up by nearly 22% from 2021. It is also 40% higher compared to the company’s total headcount at the end of 2020.

Google employees have criticised Pichai for his messaging to the workforce as of late. However, their biggest gripe is about his $226 million pay package, which many believe is not necessary especially since the company is in the middle of downsizing.

One staffer asked Pichai about Google’s headcount strategy, while another asked if the company is done with cost-cutting given the strong results.

The Google chief said they are “working through a long period of transition as a company”, which involves lowering expenses and “driving efficiencies.”

As far as the second question is concerned, Pichai answered, “We want to do this forever.”

“To be clear, we’re growing our expenses as a company this year, but we’re moderating our pace of growth,” he said.

“We see opportunities where we can re-allocate people and get things done.”</