Google CEO Wants to Make Company 20% More Efficient, Hints at Potential Cuts

Dejan Cvetnarevic
Dejan Cvetnarevic

Updated · Sep 07, 2022

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Google and Alphabet CEO Sundar Pichai announced he wants to run the company more efficiently ahead of economic uncertainty.

Running on Fewer Resources

Speaking at Code Conference in Los Angeles, Pichai said he wants to make the company 20% more efficient. The plan may also include headcount cuts in response to economic challenges and years of rapid hiring.

The recent ad spending slowdown has significantly hit tech companies, including Google. The tech giant made $67.3 billion in the first quarter of 2022, with advertising being its primary revenue source.

“The more we try to understand the macroeconomic, we feel very uncertain about it,” Pichai said. “The macroeconomic performance is correlated to ad spend, consumer spend, and so on.”

He also acknowledged that Google had become “slower” after its headcount grew. He said that, with fewer resources available, the company has to prioritize the right things, and everyone has to be productive.

The host, Kara Swisher, asked Pichai how he plans to tackle the efficiency increase, citing the recent Simplicity Sprint project. “Across everything we do, we can be slower to make decisions,” he said. “You look at it end-to-end and figure out how to make the company 20% more productive.”

The company’s CEO also provided a past example of aligning YouTube Music and Google Play Music in a single product.

“Sometimes there are areas to make progress [where] you have three people making decisions, understanding that and bringing it down to two or one improves efficiency by 20%,” Pichai stated.

Sources.

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Dejan Cvetnarevic

Dejan Cvetnarevic

Dejan is a techie at heart who always dreamed of turning his fascination with gaming into a career. He finds working for TechJury a perfect opportunity to express his views of all kinds of different software. Being an avid reader, particularly of fantasy and sci-fi, Dejan pursued a degree in English Language and Literature. When not at his computer, he’s watching sports or playing tabletop games.

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