Google Announces Series Of Cost-Cutting Measures Amid Economic Slowdown

Google has announced a series of cost-cutting measures that will affect its famous employee perks, according to a CNBC report. A leaked memo from Ruth Porat, Google's chief financial officer, has revealed that the IT giant is looking for ways to reallocate funds amid an economic downturn. The memo was first reported by Business Insider.

Google CFO Ruth Porat sent the memo to Google employees on Friday, March 31, informing them that the company would be reducing several perks as part of its cost-cutting drive, stated the CNBC Report.

Some of Google's micro kitchens will be shuttered or consolidated. The micro kitchens, which serve free snacks and drinks, and some on-campus cafes may be closed on days when they see lower footfall. These changes "will reduce food waste and be better for the environment," the memo said.

As per the CNBC report, the company will also trim costs by shifting the schedules of fitness classes and by discontinuing its spending on company-provided personal equipment like laptops. "Because equipment is a significant expense for a company of our size, we'll be able to save meaningfully here," the memo said.

"We set a high bar for industry-leading perks, benefits and office amenities, and will continue that into the future. However, some programs need to evolve for how Google works today," it added.

Cuts have shown up in other ways. The company declined to pay the remainder of laid-off employees' maternity and medical leaves, CNBC earlier reported.