Google workers, already rattled by the largest layoff in the search giant’s history, now face another indignity: sharing desks.
The move affects employees who work for Google Cloud, the Alphabet-owned unit’s data storage product, at the company’s five largest offices in Kirkland, Washington; New York City; Seattle; San Francisco; and Sunnyale, California. Workers will share their desks with fellow colleagues, the company confirmed to CBS MoneyWatch Thursday.
Googlers are permitted to work from home a few days each week, so many desks sit empty when only a fraction of staffers are doing their jobs from the company’s offices. In an internal memo obtained by CNBC, Google said the move is meant to improve « real estate efficiency, » the news outlet reported.
Savings in real estate costs will allow Google to « continue to invest in Cloud’s growth, » the memo indicated, according to CNBC.
Workers will be matched with a partner with whom they will share a workspace. Pairs of workers are expected to report to the office on alternate days to ensure that a desk is free, with employees asked tto work from their shared spaces at least two days a week.
Google said it is implementing the change based on feedback from employees.
« Since returning to the office, we’ve run pilots and conducted surveys with Cloud employees to explore different hybrid work models and help shape the best experience, » Google said in a statement to CBS MoneyWatch.
It added that Googlers who work for the Cloud division « value guaranteed in-person collaboration when they are in the office, as well as the option to work from home a few days each week. »
Google said its new « rotational model » enhances the company’s approach to hybrid work, while also allowing it to use its spaces more efficiently.
In January, Google said it would slash 12,000 jobs, or roughly 6% of Alphabet’s workforce, amid widespread tech industry layoffs.
Google Cloud, which is not yet profitable, generated $7.3 billion in revenue in the fourth quarter of 2022, up from $5.54 billion in 2021. Its operating loss for the quarter was $480 million.
Company executives also said Google expects to incur costs of roughly $500 million related to shrinking its real estate footprint.
« We have significant work underway to improve all aspects of our cost structure, in support of our investments in our highest growth priorities to deliver long-term, profitable growth, » said Alphabet and Google CFO Ruth Porat.