Shulou(Shulou.com)11/24 Report--

On the morning of February 23, Beijing time, it is reported that internal news from Google shows that Google is asking cloud computing employees and partners to switch to a shared workplace office mode from next quarter on the grounds of "real estate efficiency." Employees will share a station with others and take turns to work in the station.

Google Cloud will launch a new workplace-sharing model in the five largest offices in the United States, namely, Kirkland, Washington, New York, San Francisco, Seattle and Sun Valley, California. The move will allow Google to "continue to invest in the growth of the cloud computing business", according to questions and answer materials shared internally with employees in the cloud computing department. Some office buildings will be vacated.

"most employees will now share a station with another colleague," the internal document said. " Employees are expected to come to the office every other day, so no two employees will use the same station on the same day. "through employee pairing, employees and teams sharing workstations will be able to agree on a basic desktop environment and establish norms to ensure a positive experience in the new shared office environment."

In addition, Google employees can use the "vacant temporary space" if they come to the office during a period of time when they are not assigned a station.

Within Google, management calls the new office model "Cloud Office Evolution" (CLOE), which "combines the best pre-epidemic collaboration model with the flexibility of mixed offices". The document said that the new office model is not a temporary pilot, "in the end, it will enable our office space to be used more efficiently."

Google's decision also refers to internal data on employees returning to the office to return to work, according to the question and answer document. Google is also slowing hiring and laid off 11000 employees in January.

However, on Google's internal platform, some employees have made emojis to ridicule the adjustment. Employees see the adjustment as a cost-cutting measure. One popular emoji reads: "not every cost-cutting measure needs to be expressed as good for employees. A simple sentence,'We are cutting office space to reduce costs', will make the leadership sound more credible."

Google has yet to respond.

Currently, Google is embarking on a wider range of cost cuts, including a reduction in office real estate. However, Google has not specified the areas or buildings it plans to cut.

In an earnings call in the fourth quarter of 2022, Google executives said that about $500m in costs would be incurred in the first quarter of this year due to cuts in global office property. In addition, there may be other property charges in the future. It was reported earlier this month that Google would end the lease of "some vacant buildings" in the San Francisco Bay area, where it is headquartered.

Cloud computing, which accounts for more than 1x4 of Google's full-time employees, is also one of Google's fastest-growing businesses, but has yet to turn a profit.

In the fourth quarter, Google cloud computing generated $7.32 billion in revenue, up 32% from a year earlier, well above the company's overall growth rate of less than 10%. However, the revenue figure is still below Wall Street's average expectations, and the cloud computing business still has a quarterly loss of hundreds of millions of dollars. Of this total, the loss in the fourth quarter was $480 million, nearly half of what it was a year ago.

Overall, Google's net profit for the quarter was $13.62 billion, compared with $59.97 billion for all of 2022, both down significantly from 2021.

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