Tech giant, Google, is cutting some of its perks as it seeks to cut costs and refocus on artificial intelligence (AI), the Washington Post reported. The company will be closing some of the “microkitchens” in its offices that offer free snacks, cereal, espresso and seltzer water. Additionally, spending on equipment such as personal laptops will be cut too. The changes come as part of a major shift at Google, which recently enacted its first large-scale layoffs in January, firing 12,000 people.
Google has become known for its free perks, such as laundry, massages, meals and workout facilities and its reputation as the cushiest employer in Silicon Valley. However, with concerns about a recession and a sell-off in tech stocks, Google has joined its competitors in cutting back on expansion projects and ending perks that employees had long taken for granted.
"Google is making some practical changes to help them remain, responsible stewards of their resources, while continuing to offer industry-leading perks, benefits and amenities," said the company's spokesperson.
The cuts come as Google scrambles to stay apace with Microsoft and a growing roster of well-funded start-ups that are launching new AI products that many in the industry say will change the way people interact with computers and usher in a new era of tech competition and innovation. Google has spent billions on AI over the past decade, hiring many of the world’s top researchers, but was caught flat-footed when OpenAI, a much smaller firm, began putting out AI tools like image generators and chatbots that spurred a flurry of excitement from everyday users, tech workers and Wall Street.
Google is also moving teams to focus on “higher priority work,” keeping the pace of new hiring lower than in past years and cutting down spending on software tools, equipment and consultants. The mass layoffs that rocked the company earlier this year are still being “worked through in some countries,” according to an email sent to employees by Chief Financial Officer Ruth Porat.
