Google staff push for more information on cost-cutting measures during company-wide meeting.

• On Tuesday, after comments on the earnings call hinting at further cost cuts, Google executives addressed concerns from anxious employees during a question-and-answer session.
• The all-hands meeting featured top leaders including CEO Sundar Pichai and CFO Anat Ashkenazi dressed in Halloween costumes.
• According to a CNBC report, Brian Ong, Google's vice president of recruiting, stated that the company is currently hiring fewer people than it did a couple of years ago.

On Wednesday, executives wearing Halloween costumes were questioned by concerned employees during an all-hands meeting, after comments on the company's earnings call hinted at further cost cuts.

"According to a CNBC recording of a meeting, Brian Ong, Google's vice president of recruiting, stated, "We are currently hiring less than we did a couple of years ago.""

Ong stated that due to geographic hiring changes, there may be fewer roles available where you are, specifically in relation to retention and promotion opportunities.

A Google spokesperson declined to comment.

After Alphabet reported better-than-expected third-quarter earnings and revenue, a meeting was held, and CFO Anat Ashkenazi announced her plans to increase cost savings across the company.

At the meeting, Jeff Dean wore a starfish costume, Ashkenazi donned a jersey of Reggie Miller, and Pichai wore a black t-shirt with a pixelated dinosaur and the message "ERROR 404 COSTUME NOT FOUND."

Ashkenazi stated that one of her top priorities in her new role would be to reduce expenses as Google increases its investment in AI infrastructure in 2025.

Since 2023, when the economy and market shifted, Google has been restructuring its workforce to remain competitive in the AI arms race. This has resulted in layoffs, organizational changes, and a decline in worker morale, as previously reported by CNBC.

In recent months, Google has reduced its marketing, cloud, security, and trust and safety teams in Silicon Valley.

Google is not the only company facing layoffs. Dropbox announced this week that it will lay off 20% of its global workforce, while Amazon continues to shutter various projects. Google employees have expressed concern that the company may also lay off more staff after the end of the year, according to internal correspondence viewed by CNBC.

Ashkenazi was well-prepared for the company meeting because Pichai joked that the quarterly call was the ideal preparation.

Yesterday, I told Anat that earnings calls are much easier than TGIF, and this statement was met with laughter from the audience, as said by Pichai.

While some employees praised the company's recent achievements, including "another great quarter," success in chip advancements, and improvements in NotebookLM, others expressed concerns about the potential impact of greater cost efficiencies on the workforce.

What did Ashkenazi mean by his comments about further efficiencies in headcount?

Ashkenazi stated that employees are "one of the most important assets we have" and that the company is investing in people by hiring 1,000 new graduates in the third quarter.

'Extraordinary period of capex advancement'

Pichai, who has been advocating for efficiency for nearly two years, concurred with previous sentiments.

Pichai stated that if a new task requires 10 people but can be accomplished with eight by making strategic trade-offs and improving team alignment, that's an example of reducing headcount while maintaining efficiency.

Pichai assured that if any companywide decisions are made regarding ongoing layoffs and reorganizations, they will be communicated to the public.

Although he stated that the company is currently investing heavily in AI, the requirement to increase spending in this area will not be perpetual.

"Pichai stated that we are currently experiencing an unprecedented period of capital expenditure growth. At the initial stages of technological advancements, we tend to invest heavily, and as the curve improves, the investment becomes more proportionate. This is the transition that the industry is currently undergoing."

Not all of the cuts are made by top executives, he stated.

"At our company, decisions are not always made centrally, so there may be instances where only a small group of people is affected."

On Tuesday, Ashkenazi stated that one way to improve cost efficiency is by implementing AI internally. The company revealed that 25% of new code is currently generated using AI.

Brian Saluzzo, head of "Core" developers, stated that while the 25% refers to low-level tasks, leadership is currently focusing on expanding into more complex areas within the company.

Google's flagship products are built by teams known as "Core," which were restructured in May, resulting in the layoff of over 200 employees. Some of these roles were later rehired in India and Mexico.

"Across all functions and everywhere in the company, it's worth challenging us to think about how AI can increase productivity," said Pichai.

He emphasized that by 2025, the workforce should aim to achieve more and assist customers globally in implementing those learnings.

WATCH: More than a quarter of new code is AI-generated