Merging company

“I want to see a 20% more efficient company”

Google CEO Sundar Pichai has hinted at further job cuts if the company doesn’t become 20% more efficient. It comes weeks after Google executives reportedly warned its employees to work harder or be ready to leave because “there will be blood in the streets” if upcoming quarterly results fall short of expectations.

Pichai said he hopes to make Google 20% more efficient as it tackles issues like economic challenges and rapid hiring over many years. Speaking at the Code conference in Los Angeles, Pichai shared details on how the company plans to be more efficient amid economic uncertainty and a broader slowdown in ad spending, according to a CNBC report.

“The more we try to understand the macroeconomics, the more we feel very uncertain about it,” Pichai said Tuesday, adding, “Macroeconomic performance is correlated with advertising spending, consumer spending, etc.

The Alphabet boss acknowledged that the company had become “slower” after its workforce increased, but added that macroeconomic factors were beyond his control.

“We want to make sure that as a company, when you have fewer resources than before, you prioritize all the good things to work on and that your people are really productive that they can actually make an impact. about the things they’re working on so that’s what we’re spending our time on,” he said.

“In everything we do, we can be slower in making decisions,” Pichai said at the event. “You look at it end to end and find out how to make the business 20% more productive,” he added.

Pichai gave specific examples of how he plans to pursue this. He also cited examples of merging YouTube Music and Google Play Music into a single product.

“Sometimes there are areas to improve [where] you have three people making decisions, understanding that and reducing it to two or one improves efficiency by 20%,” he gave in another example.

In August, Google in a letter from the company told employees that there would be an “overall review of sales productivity and productivity in general” and that if the results for the next quarter “are not looking, it there will be blood in the streets”.

If the third quarter results “don’t look, [then] there will be blood in the streets,” according to a message sent to the commercial team. The warning was first reported by Insider. The IT giant has now threatened its employees with layoffs if profit expectations are not met.

Pichai had in July told employees they needed to improve their productivity due to fierce economic headwinds. He said he wanted to get ideas from employees to get “better results faster.”

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