Google’s CEO Sundar Pichai has addressed a mail to all Google (Alphabet Inc) employees informing them of certain measures towards curtailing costs. These include going slow on fresh recruitments through the rest of the year. Those who have been already issued offer letters will be inducted without any hassles.
While the media attention has largely been on how the smaller businesses and startups have been severely impacted due to the shutdown of economic activity, it appears even the biggies like Google cannot escape the negative fallout. The COVID-19 pandemic has pulled down practically every section of the economy in its wake. Prolonged lockdowns have ended in loss of revenue and one of the first areas companies try to save on is advertising. This has a direct effect on companies like Google.
As for the other areas of reducing expenses, Pichai’s mail speaks of “recalibrating the focus and pace of investments in areas like data centers and machines, and non-business essential marketing and travel.”
This is possibly a rare moment in the history of the company that such measures are being even contemplated. These are unprecedented times too, without doubt. The United States, where Google has its headquarters, has seen a rapid rise in the number of coronavirus cases as well as in the mortalities. With close to 650,000 affected cases and the death toll nearing the 30,000 mark, the US is right there on top as one of the worst affected countries.
Pichai has referred to the crisis in his mail and explained how it has taken one of global proportions and in an integrated and inter-dependent business environment, none can escape being impacted.
Google has also been making its own contribution to the efforts at fighting the pandemic by releasing $800 million in grants and customer credits. In addition, it has gifted 4,000 Chromebook laptops to schools to encourage them to impart education to students living in their homes or elsewhere.