Google stops hiring to make existing employees work harder

Update: 2022-08-13 13:45 IST

For representational purpose

Google has reportedly extended the deadline for a hiring freeze. Last month, the company announced it would freeze hiring for two weeks to encourage existing employees to be more efficient and focused. Now, a new report claims the search giant has pushed this for another week, according to two Google employees who spoke to Business Insider.

The news comes after Google CEO Sundar Pichai said last month that "productivity as a whole is not where it needs to be for the workforce that we have." He basically believes that the company has too many employees, but not many of them are working productively and focused on achieving goals.

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Google has already announced that it will slow down the hiring process for the rest of the year but will continue to hire for "critical roles." While several big tech companies are laying off many workers in the name of restructuring. Well, experts feel that the world is worried that the recession could hit soon, which is why we hear more about layoffs as companies try to save some costs.

While some companies have revealed that this is also a cost-saving measure, most companies have stated that restructuring is one of the reasons behind laying off workers. While Google has yet to lay off any of its employees, the CEO recently claimed that the company is "immune to economic headwinds," which basically suggests that it is financially stable and doesn't need to lay off workers.

"The uncertain global economic outlook has been top of mind. Like all companies, we're not immune to economic headwinds. Something I cherish about our culture is that we've never viewed these types of challenges as obstacles. Instead, we've seen them as opportunities to deepen our focus and invest for the long term," according to an internal memo sent by CEO Sundar Pichai and obtained by The Verge.

The CEO wants Google employees to be "more entrepreneurial, working with greater urgency, sharper focus, and more hunger than we've shown on sunnier days." "In some cases, that means consolidating where investments overlap and streamlining processes. In other cases, that means pausing development and re-deploying resources to higher priority areas," Pichai said.

Just a few days ago, companies like Netflix, Shopify, Coinbase, Alibaba, Robinhood, and Microsoft laid off some of the workers for more or less the same reason we mentioned before the restructuring. So far, Microsoft is reported to have laid off more than 2,000 employees.

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