Alphabet To Cut Down On Employee Services In A Bid To Reduce Costs

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Alphabet To Cut Down On Employee Services In A Bid To Reduce Costs

Alphabet To Cut Down On Employee Services In A Bid To Reduce Costs

Ruth Porat is the finance Chief at Google and has recently made it into the news after sending a company-wide email. In the email, Ruth explained that Alphabet would be cutting down on employee services.

She added that these cuts are part of multi-year efforts to work towards durable savings. As per the reports, the company will be cutting back on staplers, laptop replacements, tape, and fitness classes for employees.

If you think about it, it appears as if Google is trying to cut down costs by spending less on employee services. Although the things like staplers and tapes might not have an effect on the employees, the fitness classes and the laptop replacement will most certainly do!

According to Porat, Alphabet's objective for this year is to work towards durable savings. And to achieve that, the company will rely on improved efficiency and velocity.

Google Faced With Slow Sales Growth

In January, Alphabet announced the elimination of around 12000 jobs which was a major blow to the tech sector. This meant that the tech company removed 6% of its active workforce.

At that time, the reason for this downsizing was a slowdown in sales growth. And now, the company is introducing cuts here and there.

The latest cut was made to the employee services which means there will be fewer staplers and tapes! In addition, Alphabet also declined to pay the medical & maternity leaves of its laid-off employees.

At that time, Porat said something along the lines of how it was a very difficult and hard decision to make. And now, it appears she is cutting back on employee services!

For a company the size of Alphabet, it doesn't makes sense to cut back on wellness classes or any other employee services. After all, cutting back on these could lead to a drop in productivity which would hurt the company's bottomline.

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