Confronting company executives is often a challenging task, and it becomes even more unusual when they are in costume. This unusual scenario unfolded for Google employees during an all-hands meeting on Wednesday. Prior to Halloween, Alphabet convened its employees to discuss the company’s earnings, which had been announced late on Tuesday. The company’s revenue saw a 15% increase, reaching $88.27 billion, primarily driven by significant investments in AI that boosted the sales of Google’s Cloud services.
Executives attended the meeting in costumes, with CEO Sundar Pichai wearing a T-shirt that read “ERROR 404 COSTUME NOT FOUND” alongside a pixelated dinosaur illustration. CFO Anat Ashkenazi donned a basketball jersey of retired Indiana Pacers star Reggie Miller, while Chief Scientist Jeff Dean was dressed as a starfish, as reported by CNBC.
A Google spokesperson confirmed to Fortune that some executives were indeed in costume during the quarterly meeting, a routine affair where over 20 employee queries were addressed, covering topics ranging from product details to cost-cutting strategies. The spokesperson noted that Google continues to hire for key roles.
Despite the festive attire, tensions lingered among some employees following the earnings call, which suggested possible cost reductions. Employees reportedly inquired about retention and promotional opportunities. Brian Ong, Google’s vice president of recruiting, acknowledged during the meeting, according to a recording reviewed by CNBC, that the company is hiring less compared to a few years ago.
Ashkenazi, who succeeded former CFO Ruth Porat, also alluded to potential cost reductions. She stated that while Google has been effective in enhancing efficiency, there’s always room for improvement. Her remarks echoed those of Pichai from earlier in the year, when he mentioned that Google’s ambitious goals might necessitate job cuts.
Google’s workforce is familiar with the uncertainties of cost-saving strategies. Despite recent advances in Google Cloud, the division experienced layoffs in May, affecting fewer than 100 employees. The company employs 1,000 fewer people this year compared to the same period last year, as previously reported by Fortune.
The tech sector is undergoing its slowest earnings growth in six quarters, and it has not been spared from widespread layoffs, which have exceeded 130,000 in the current year, including 3,765 within the sector in September, and 528 from Dropbox alone, as recently announced.
Pichai acknowledged that Google’s substantial investment in AI could continue to impact headcounts and team sizes. During the earnings call, he revealed that over 25% of the code at Google is now authored by AI. Ashkenazi indicated that the use of AI internally is a viable method to enhance workplace efficiency and reduce costs.
Ashkenazi encouraged a shift in focus from organizational size to operational effectiveness. She highlighted that simplifying the organization and incorporating AI in work processes could present opportunities for improved efficiency.
