Saturday, December 7, 2024

Google CEO Upholds Desk-Sharing As Offices Look Like ‘Ghost Towns’

CNBC has acquired recordings of Google CEO Sundar Pichai supporting the company’s decision to institute a desk-sharing policy for its cloud workers and partners at a company-wide gathering last week.

According to reports, Pichai has complained that many workers only come into the workplace twice a week, which is not the most efficient use of Google’s “expensive real estate.”

Pichai claims they’re attempting to be effective and save money while using resources well.

After a CNBC story last month, Pichai has confirmed that Google will ask its cloud workers and partners to share desks in its five most important sites, including New York and San Francisco. The company’s reduction program is CLOE or Cloud Office Evolution.

At Alphabet’s earnings conference in early February, the company expects Google to spend around $500 million this quarter on decreased worldwide office space. Sales growth is declining, and the business is worried about the economy.

Pichai stated that the office area needs to be more utilized because many employees only come in twice a week. He warned them to be cautious with their costly real estate if they only plan to use it 30% of the time.

At the same all-hands gathering, Google Cloud’s VP of strategy and operations, Anas Osman, reported that, according to data from the team’s pilot to returning to physical locations, about one-third of workers were coming into the offices at least four days a week.

Osman explained that workers were allowed to work from a private or communal workspace during the trial.

Osman estimated that the utilization rate for those 1-to-1 workstations at four days or more was around 35%. He praised the approach, saying it strikes a nice mix between cutting costs and enhancing the user experience. He also noted that there was increased output due to everyone pitching in.

Pichai clarified that the new policy only applies to cloud workers and that the firm allows teams more leeway to innovate. About a quarter of the company’s employees operate in the cloud business.

During the discussion, Pichai listened to employees’ complaints about the desk-sharing policy’s introduction and implementation. After CNBC made a claim, the internal Memegen system reportedly saw a rise in images attacking leadership’s messaging. 

One of Pichai’s remarks in retorting to employee queries was something to the effect of “doublespeak is disrespectful and frustrating,” Another was the result of “bad things happen, no need to make every terrible event sound like a miracle.”

After hearing this, Pichai responded by saying he shared the same opinion.

He believes it is critical always to make an effort to be as honest as feasible. Nearly all forms of contact are open to the public at our site. He continued that speaking to the world with words can have a tangible effect.

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