Google slashes lavish worker perks including ‘micro-kitchens’ in savings push

The artificial intelligence advancement race in the tech industry is more intense than it has ever been. Google, famous for its free sushi lunches and company-provided massages, has reportedly decided to cut down on some of its famous perks to trim costs and reorient itself to focus more on AI advancements. 

Google, even among its high-paying tech company rivals, is known for its free perks, including laundry, massages, meals, and workout facilities. Along with the perks, the high salaries and recurring stock grants have given the company the reputation of the cushiest employer in Silicon Valley, reports Washington Post. 

However, concerns about a recession have ended the golden days for tech workers which also includes Google's employees. 

Google, along with its competitors, has started firing thousands of workers, cutting back on expansion projects, and ending perks that employees long took for granted.

"We're making some practical changes to help us remain responsible stewards of our resources while continuing to offer industry-leading perks, benefits, and amenities," spokesman Chris Pappas said.

Chief Financial Officer Ruth Porat sent out an email to the employees, informing them that the company will be closing the doors to some of the"micro kitchens" that populate its many offices and provide free snacks, cereal, espresso, and seltzer water.

The mass layoff of 12,0000 employees, which was announced in January of this year, is still being "worked through in some countries," Porat said in the email.

The cuts are made to stay apace with Microsft and the rising competition in the tech industry with all the well-funded start-ups that are launching new AI products which are expected to change the way people interact with computers. The new products will introduce a new era of tech competition and innovation.

"This work is particularly vital because of our recent growth, the challenging economic environment, and our incredible investment opportunities to drive technology forward — particularly in AI," Porat said. Google is also moving teams to focus on "higher priority work," keeping the pace of new hiring lower than in past years and cutting down spending on software tools, equipment, and consultants, she said.

Over the decade, Google has spent billions on its own AI research and advancements. However, with OpenAI's AI tools such as image generators and chatbots, the company had decided to focus more of its resources on Ai to keep up with the industry's fast-growing pace. 

the company's focus right now is on finding ways to more efficiently use those computers to save time and energy, according to Porat said.

Despite the rush to dominate the industry and the market, Google is still at the center of the AI race. The company has the advantage of possessing all the necessary tools and technology to train cutting-edge AI algorithms.