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Alphabet executives, including CEO Sundar Pichai, recently faced questions from concerned Google employees regarding potential cost cuts following comments made during the company’s earnings call. The meeting, which took place in Mountain View, California, featured employees dressed in Halloween costumes and raised various issues, including hiring changes and the possibility of layoffs.

During the meeting, Google recruiting vice president Brian Ong addressed concerns about retention and promotion opportunities, stating that the company is hiring fewer employees compared to previous years. This shift in hiring practices has resulted in fewer open positions and changes in geographic hiring, impacting the availability of roles in certain areas.

While Alphabet reported strong third-quarter earnings and revenue, CFO Anat Ashkenazi expressed a desire to implement further cost-saving measures across the company, particularly as Google expands its investment in artificial intelligence infrastructure. This focus on cost efficiency began in 2023 and has continued as Google adapts to increased competition in the AI space.

Employee questions and comments during the meeting ranged from praise for the company’s recent performance to concerns about potential layoffs and reorganizations. Some employees expressed fear about what greater cost efficiencies could mean for the workforce, particularly in terms of headcount reductions.

In response to these concerns, Pichai emphasized the importance of efficiency and making smart trade-offs to optimize resources. He acknowledged the company’s heavy investment in AI technologies and the need to find ways to improve productivity through the use of artificial intelligence.

Ashkenazi highlighted the role of AI in driving cost efficiency within the company, noting that 25% of new code is now generated by AI. While this has primarily impacted low-level tasks, Google is exploring ways to expand AI usage to more complex areas within the organization.

Overall, the meeting shed light on Google’s ongoing efforts to balance cost-saving measures with investments in AI and productivity enhancements. While concerns about potential layoffs persist, executives reassured employees that decisions would be communicated transparently and that the company values its workforce as a key asset in driving future growth.