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Google Businesses

Google Employees Question Execs Over 'Decline in Morale' After Blowout Earnings (cnbc.com) 96

"Google's business is growing at its fastest rate in two years," reports CNBC, "and a blowout earnings report in April sparked the biggest rally in Alphabet shares since 2015, pushing the company's market cap past $2 trillion.

"But at an all-hands meeting last week with CEO Sundar Pichai and CFO Ruth Porat, employees were more focused on why that performance isn't translating into higher pay, and how long the company's cost-cutting measures are going to be in place." "We've noticed a significant decline in morale, increased distrust and a disconnect between leadership and the workforce," a comment posted on an internal forum ahead of the meeting read. "How does leadership plan to address these concerns and regain the trust, morale and cohesion that have been foundational to our company's success?"

Google is using artificial intelligence to summarize employee comments and questions for the forum.

Alphabet's top leadership has been on the defensive for the past few years, as vocal staffers have railed about post-pandemic return-to-office mandates, the company's cloud contracts with the military, fewer perks and an extended stretch of layoffs — totaling more than 12,000 last year — along with other cost cuts that began when the economy turned in 2022. Employees have also complained about a lack of trust and demands that they work on tighter deadlines with fewer resources and diminished opportunities for internal advancement.

The internal strife continues despite Alphabet's better-than-expected first-quarter earnings report, in which the company also announced its first dividend as well as a $70 billion buyback. "Despite the company's stellar performance and record earnings, many Googlers have not received meaningful compensation increases" a top-rated employee question 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?"

Google Employees Question Execs Over 'Decline in Morale' After Blowout Earnings

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  • Greed (Score:5, Informative)

    by RitchCraft ( 6454710 ) on Saturday May 11, 2024 @09:54PM (#64465973)

    It's called greed.

    • Re: (Score:3, Interesting)

      by alvinrod ( 889928 )
      Who's being greedy? The company that wants to keep more profit for themselves, the employees who want more pay for themselves, or the customers who want to pay less for the same as before? Everyone is greedy.

      The only meaningful way for employees to earn more is for there to be an alternative purchaser for their labor or for them to own stock in the company that they work for. A good way to achieve both at the same time is for those employees to quit and form their own business to compete against Google.
      • Re:Greed (Score:5, Insightful)

        by denny_deluxe ( 1693548 ) on Saturday May 11, 2024 @10:09PM (#64466003)
        So employees wanting their fair share of the profit they generated for management is 'greedy' now? Human Resources has spoken.
        • by backslashdot ( 95548 ) on Saturday May 11, 2024 @10:24PM (#64466023)

          Why did the employee foolishly generate more productivity than they agreed to generate for their pay? This is like back in the 80s or early 90s when you would stop at a red light and someone would squeegee your window and demand to be paid a dollar for the work.

        • Re:Greed (Score:4, Funny)

          by sfcat ( 872532 ) on Saturday May 11, 2024 @10:25PM (#64466025)
          Come on now. This is Google we are talking about. Half of those employees probably do nothing except live stream the fact they are doing nothing. You act like this is a construction company where people actual do this thing called labor.
          • And yet, still more work than venture capitalists.
          • The problem isn't that they don't do work. The problem is that the work they do is inefficient. Too many meetings and approvals and reviews and privacy plans and design docs and goal docs and risk reductions and not enough JUST BUILD THE THING.
          • by g01d4 ( 888748 )

            employees probably do nothing

            They're supposedly working on the next big thing, as they've been doing for the last, what, 20 years, while ad revenue has been raining like manna from Heaven. Has there ever been any justification for all that ad spending?

        • The fair share is the amount you agreed to be paid. Would it be fair for a Ford employee to demand part of your salary because he contributed to you getting to work and productivity?

          • Re: Greed (Score:4, Insightful)

            by LindleyF ( 9395567 ) on Sunday May 12, 2024 @05:33AM (#64466409)
            That assumes pay is flat. In practice, it isn't; it's adjusted every year. The problem is when profits go up and pay adjustments are negative at the same time.
          • by AmiMoJo ( 196126 )

            Workers should expect a bit more than just what their contract says. In fact most countries have laws stating that they can.

            For morale, it's pretty bad when you see the company laying off large numbers of people in order to maintain short term profits. It's the kind of thing that destroys any loyalty people may have, and gets them to start thinking about the next stage of their career. Every new project is judged based not on if it is rewarding or beneficial to society at large, but on if it's going to end

          • by Anonymous Coward

            If you lay off my coworkers and expect me to pick up their work on top of mine, then yes I do expect a larger share.

        • Re:Greed (Score:5, Insightful)

          by timeOday ( 582209 ) on Sunday May 12, 2024 @12:26AM (#64466181)
          So you think a person doing a job for one company should be paid less than somebody doing the same job for a different company based on how much profit either company makes? Or that you should pay your employer to work if they lose money that year?

          That's not how pay works. It is how equity works, though, so if that's the situation you want to be in, go ahead and use you paycheck to purchase stock in your employer. It can pay off, or not.

          • You think employees should be indifferent to how successful the company is? Shareholders should be nervous.
          • Employees are always paid better based on how they perform, and a good hint at employee performance is company profits. Manager "expectations" are often meaningless. Of course, employees have to be paid in full no matter if they are total slackers, that's the agreement. But the expectation is that slackers get fired, and hard workers get bonuses, raises, promotions -- often by moving to a company that appreciates them.

        • Your "fair share" is exactly what you agreed to work for and not a penny more.

          If your employer is shorting your paychecks, sue them.

        • So employees wanting their fair share of the profit they generated for management is 'greedy' now? Human Resources has spoken.

          There is no such thing. They (you) are employees, you agreed to do a job for a set amount of compensation. Quit whining and do your job or move on.

      • Not the only options. The underlying pricing mechanism is scarcity in the face of demand. In your first example, the alternate purchaser hires some employees away from Google, which causes an increase in employee scarcity from the point of view of Google, with Google's demand remaining the same. Thus the price of the emloyees rises.

        So, if you want to discover other options that cause the price to rise, consider the pricing mechanism. As a simple example which you missed, employee unions have the power to

      • Who's being greedy? The company that wants to keep more profit for themselves, the employees who want more pay for themselves, or the customers who want to pay less for the same as before? Everyone is greedy.

        One glaring missing omission from this list: executives. Employees produce corporate output, but executives make the decisions. So, it doesn't matter if employees are greedy because their feelings and opinions don't matter in terms of corporate decisions.

        Everyone is entitled to their own greed, and that's not necessarily a bad thing. However, competence is another matter. Executives are gambling that they can squeeze the employees with no drop-off in productivity. Instead of increasing corporate margi

      • Who's being greedy? The company that wants to keep more profit for themselves, the employees who want more pay for themselves, or the customers who want to pay less for the same as before? Everyone is greedy.

        Both sides!!! Except you're wrong. The company pays their employees. If the cost of everything constantly goes up, it's not greed. It's called not losing money, while providing the same amount of labor. It's not getting conned by greedy executives that want to be kings. Own everything and take everything.

        The only meaningful way for employees to earn more is for there to be an alternative purchaser for their labor or for them to own stock in the company that they work for. A good way to achieve both at the same time is for those employees to quit and form their own business to compete against Google. If they're short on cash, there's apparently a large number of groups in the area that will provide that cash in exchange for a stake in the business.

        So they should be the alternative purchaser of labor by forming a competitor of google? You sound like a greedy executive. They should do everything, while I sit around and take, take, take.

      • This makes perfect sense because the company, employees and customers are all the same size and scale and all have the same bargaining and purchasing power :|

    • by gweihir ( 88907 )

      Indeed. In this case, part of an ongoing enshittification process.

  • Of course! (Score:5, Insightful)

    by jenningsthecat ( 1525947 ) on Saturday May 11, 2024 @09:55PM (#64465975)

    The employees are only part of "the team" as long as they are hard to replace. At any other time, they're just serfs. Now that replacing large numbers of employees with "AI" is perceived to be on the horizon by the company's masters, they're making sure those employees are aware of their serfdom. They can be 'properly' respectful and deferential to their 'betters', or they can be cast out.

    Royalty rules by decree and not by consensus, and Alphabet's leadership and large shareholders fancy themselves as royalty. In a de facto day-to-day functional sense, they may actually be correct in that assessment - their dominance in mobile phones and in advertising makes them very powerful. Power corrupts - it encourages arrogance, callousness, and social irresponsibility. Fundamentally, it both breeds and feeds psychopathy. This is why society needs to exercise better, stronger, more ruthless control over corporate entities.

    • by martin-boundary ( 547041 ) on Saturday May 11, 2024 @10:04PM (#64465991)
      The French called. They're asking if you need any help with your "royalty"?
    • Re:Of course! (Score:5, Interesting)

      by Brain-Fu ( 1274756 ) on Saturday May 11, 2024 @10:11PM (#64466005) Homepage Journal

      I mostly agree with you.

      On the one hand, employer's attitude to compensation is "pay what the market requires, and no more." How well they have lined their pockets has nothing to do with what their people are paid, they pay market rates and maybe a bit above to retain the VIPs, and that's it. And they feel their employees are being uppity with this totally inappropriate demand that the company owners should share their wealth with the workers.

      On the other hand, employees MUST push for higher compensation, consistently, or they will receive nothing more than table scraps. The only force that pushes their salaries up is their refusal to stay loyal to companies when others are willing to pay more to poach them. So, a conversation like this is a good starting point, but that's all it is. Either they union up or they shop around for a higher salary and walk as soon as they get it. That's how employees take what they deserve.

      It might not be cause for joy that everyone must constantly fight for what they deserve. But seeking one's own best interest is simply human nature. That's never going to change. If you removed every leader at Google and replaced them with anyone else (assuming they had sufficient education to competently lead a business of this size, and hence not run it straight into the ground) you will see the new leaders behave exactly like the old ones, because they have exactly the same incentives. That's just the way it is. All anyone can do is figure out how to make the best of it.

      I do agree that we need to keep businesses regulated. Regulation is necessary to protect the freedom of the market. Without regulation, monopolies and cartels dominate and ruin absolutely everything. But (and this is the only point where I disagree with the OP), that doesn't mean that all businesses should be so thoroughly regulated that they are effectively state-owned. We cannot completely destroy the profit incentive, because that incentive is the means by which we get the services and technological advances we want. A balance must be struck, and that means giving as well as taking.

      • Thanks for an excellent response - I agree with everything you wrote. That includes your last paragraph. I skew a bit toward total state control as a counter to the forces that push toward full corporate autonomy with a Libertarian bent. You and I might quibble a bit about how far that's appropriate, but I think we're pretty much on the same page here.

      • Those are mechanisms that employers use to share the wealth. I am pretty sure most silicon valley employees make mint with their stock options. I don't believe the whining.
    • This is why society needs to exercise better, stronger, more ruthless control over corporate entities.

      Most of the time they pay of the politicians to be their own regulators.

  • The biggest change (Score:5, Insightful)

    by stikves ( 127823 ) on Saturday May 11, 2024 @09:57PM (#64465981) Homepage

    The biggest change I see is the trust in engineers by the upper management.

    Previously, many projects were started bottom up with individual or small group efforts. Things like GMail or AdSense were given as examples to 20%, but there were many others over time where individuals showed "personal leadership" and started successful project (or smaller things that pushed the envelope in metrics, without users noticing a high level change).

    In any case, it seems like Google is now becoming (became?) a top down company where VPs and other execs push for short term wins for their own career growth, while entire teams are left scattering. Constant reorgs, and unknown direction followed by financial uncertainty for engineers does not sound like the Google of the old anymore.

    • by gweihir ( 88907 )

      Constant reorgs, and unknown direction followed by financial uncertainty for engineers does not sound like the Google of the old anymore.

      It does not. Instead it sounds like ye old crappy large IT company. Well. Not much or a surprise. I guess they figured out they can coast along on sheer size for a long time now. No need to be innovative or be an attractive workplace.

  • by Anonymous Coward

    Around 2000, Ford, like the other car companies, was struggling with downcycles, and so had deals to limit profit sharing because there was none. Pain sharing so to speak.

    Then the economy got better and they had a banner year. Per profit sharing formula, everyone should have gotten a good chunk of change. But the CEO decided something not dissimilar from punishments will continue until morale improves. So only a fraction of what the formula said.

    Sorry, Googlians, this is nothing new.

  • Morale (Score:5, Funny)

    by burtosis ( 1124179 ) on Saturday May 11, 2024 @10:06PM (#64465995)
    The floggings will continue until morale improves.
    • Re: (Score:2, Troll)

      by geekmux ( 1040042 )

      The floggings will continue until morale improves.

      Fine. The enshitification of the product will continue until management improves.

      And now we know how we got here. Fuck You Very Much, responding with Fuck Us Very Much.

    • Industry standards. Others lined up to take your place. Those r good jobs relatively. Get some skills experience then can go elsewhere but might not be any greener
  • by geekmux ( 1040042 ) on Saturday May 11, 2024 @10:11PM (#64466011)

    So, valued employees raise a valid question about how and why morale is in the shitter while the company wins bigger than ever, and management responds with:

    Google is using artificial intelligence to summarize employee comments and questions for the forum.

    Here’s a thought Google. How about you act a bit more fucking human in your response here. Having a machine even summarize a very human problem is probably one of the reasons morale is in the shitter.

    Meatsack bosses who act like this deserve to have their talent pool rug rapidly pulled out from under them via attrition.

  • Those overpaid little brats? I think they'll live.

  • Considering where today's AI is. This is truly eating your own dog food.
  • Well, nothing in this article actually shows that employees are on average performing better. It does seem like Google has hired a large number of people over the last couple of years, so perhaps the higher revenue is just driven by higher number of workers, rather than per worker performance, and probably the higher aggregate performance did translate to higher aggregate pay given they have thousands of employees. It's just that that aggregate pay is distributed over higher number employees, so each employ
  • by rsilvergun ( 571051 ) on Sunday May 12, 2024 @01:02AM (#64466215)
    We've had a very good run because of all the startups but the big tech companies are buying out and shutting down the startups long before they can employ very many people. They're all so colluding to keep wages low and to bring in as much cheap overseas labor as possible.

    We cannot directly bargain with multi-billionaires strategizing against us at country clubs. They have vastly more resources than we do. It's the old thing where you can break an arrow easily but a bunch of arrows can't be broken.

    A hard part is when you work an IT you talk to idiots all day long and it's easy to get a really really really really really big head. It doesn't matter how smart you are though if somebody was more money and power uses that to come down on you like a ton of bricks. The smartest man in the world still dies if you shoot him
    • Re: (Score:2, Insightful)

      and to bring in as much cheap overseas labor as possible.

      Gee, it's too bad there wasn't some sort of political movement that cared about such concerns.

      But ... no more mean tweets, so I guess there's that!

      • I mean I have close family who are alive today because the Democratic party paid for their health care while the Republican Party fought tirelessly to take it away and pocket the money for themselves...

        But as much as I hate to admit it when it comes to bringing in cheap labor from overseas both sides are united. The Republicans of course just want the cheap labor and to lower overall wages in the country.

        The Democrats have some of those people but we've mostly kick them out of the party (I'm looking
        • by DarkOx ( 621550 )

          I mean I have close family who are alive today because the Democratic party paid for their health care while the Republican Party fought tirelessly to take it away and pocket the money for themselves...

          That is a blatant lie and you know it. We have not in the post war era been in the habit of letting indigence kill anyone. Now they may have ended up caring a lot more medical debt under other systems and maybe you are happy they were allowed to steal from others because of their bad luck or far more likely given who is posting ridiculously poor choices.

          Lets be real about that too - at least 25% of the pre-ACA uninsured and uninsurable were already covered by one or more state and federal program. They were

    • I've been saying tech workers need to unionize for a while. They would help with things like pay raises.

      Some things, like companies massively over-hiring [businessinsider.com] then following up with mass layoffs could be addressed by legislation that strongly discouraging over-hiring in the first place by mandating continued full-time pay and health coverage for 1 year and instant vesting of all unvested RSUs.

  • Pechai is in the process of moving the company off-shore, but mostly to India.
    Google will be going through a lay-off every year (or possibly more often) in western nations, while they will hire elsewhere, but mostly in India.
  • by SlashDotCanSuckMy777 ( 6182618 ) on Sunday May 12, 2024 @01:45AM (#64466249)

    They hate their workers, like all companies.

  • Now, if only there were some way for all the employees to get together, agree to stand together in solidarity, & negotiate together with the management to resolve these grievances & come to a mutually amicable agreement. I wonder how that could be done?
    • What really weakens the employee's bargaining position here is that they are exceptionally well-paid, so the line of people willing to replace them is a mile long.
    • by Anonymous Coward

      Yeah, if only America's tech industry was more like Europe's. No, wait ...

  • Or greed as stated in the first comment.
    First, few young talented people build something in their garage (yes, I know, legends ...)
    Then, it meets success. Very well
    Then, it grows, and hire, hire, hire
    Among these new people are financial ones, far from the garage things
    Then the founding members leave
    Then finance take control
    Then it's money money money, make the share holders richer every year, and forget what the true wealth of the company is

    There may be variants, their may be success anyway, or qui
  • Why hav companies Dudley all gone for mass layoffs and are earning money hand over fist?

    It's because they all know a mass financial reset is coming, they want as much cash and as few people as possible to live through it.

    It is a wave that will sweep many companies, and people, aside...

    Good luck everyone.

  • Speaking as a retired journalist who runs some websites with Google ads which don't even generate enough to cover my $5/month server costs, I feel this is an extremely exploitative corporation. I devoted quite a bit of time satisfying Google's search engines by shifting from its Adsense JavaScript library to its Admanager library so as to avoid randomly sized ads causing its mobility-friendly tests to fail and also unwanted pop-ups, and my reward was to have my ad revenue halved from the few pennies it was getting. Just about all advertising where I live (South Africa) now gets pocketed by Google, and I feel most of that money is getting wasted since the majority of the web is now robotic clickbait who I'm guessing employ people to just click on pages without reading them. Between its monopoly of ads and browsers, Google has become a parasite that is going to kill its host, the web, unless some competition miraculously appears from somewhere.
  • Between Return To Office, then outsourcing teams offshore, and now not giving raise despite huge profits, Google has completely graduated into your run-of-the-mill giant mature faceless and heartless corporation.

    It is futile to hope the execs care about employee morale, execs in a mature corps only care about getting money into their own pocket and nothing else.

    • Workers need to stop being such little bitches and do something effective about it: strike, unionize, or quit. Because the poor treatment won't stop until they push back collectively.
  • That's the only thing that had ever worked. But then it unless the membership disallows it, the union will sooner or later take politics as its primary function as opposed to its members.
  • by argStyopa ( 232550 ) on Sunday May 12, 2024 @10:16AM (#64466775) Journal

    ...has become IBM.

  • Solution seems obvious - work and get paid while also owning part of the company and also get paid... Plus you get to vote on the direction of the company.
    • No. Workers, even IC8 engineers, barely make any money relatively and can't compete with TIAA. Their only leverage is work stoppage or working elsewhere. Unions are just delaying the inevitable but still dealing with a dirty adversary. They should form worker-owned co-ops and work somewhere stable and sustainable focusing on long-term retention and good morale.
      • Google, like me, doesn't know what TIAA means. But yes one employee can't vote on much but if they all buy shares... It would be closer to a union.

        Complaining about not sharing in company profits though is not what unions are for. It is supposed to be for fair and humane treatment of employees. Whining that your piece of the pie is not big enough is not what unions are supposed to be about.

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