Google implemented a two-week hiring freeze in July, but as the search giant shows no signs of reversing it, employees worry about what it could mean for them.
The hiring freeze has been extended another week, according to two employees familiar with the matter. It hasn't been officially announced, and it is also a "very fluid situation," one employee said. The company had already planned to slow down hiring for the rest of the year, although it will still hire for critical roles.
Still, as the company has yet to officially reverse its decision, it has prompted disquiet among rank-and-file employees around layoffs or stricter performance measures. Insider spoke with six employees and one contractor on the condition of anonymity because they're not authorized to speak to the press. As one employee put it, there has been a "real vibe change."
As the industry reckons with an uncertain economic climate, a number of tech giants – including Facebook, Netflix, and Google – have either slowed or frozen hiring entirely. Google slowed hiring in early July when senior managers were said to be "reviewing any additional headcount request very closely," Insider previously reported. A July 20 announcement detailed a two-week hiring freeze for senior leaders to "review our headcount needs."
Workers say they've already seen the company cut back on hiring. Ever since Pichai sent an email saying that the company's headcount doesn't match its productivity, "everyone has been talking about the company tightening its belt," an employee said.
And when people leave, roles aren't getting back filled. Another employee said that there are "whispers of them clawing back headcount in some places where people leave." Google still has job postings up and candidates are still going through the interview process, but as a manager put it, "We're not putting any new job ads out there."
"I have no idea if I'll be told I can hire someone tomorrow, or what kind of limits might be placed on me in terms of how many people I'll be able to onboard, or what their salaries might be and whatnot," they added.
Employees worry how performance ratings can be used to make cuts. Sales leadership at Google Cloud made threats to employees, saying that there will be an "overall examination of sales productivity and productivity in general" and that if next quarter results "don't look up, there will be blood on the streets," according to a screenshot viewed by Insider.
"The communication has been rude and it's threatening people to make sure we hit numbers," an employee said.
Others worried that more people could be put on performance improvement plans or get pushed out.
"I don't think you should underestimate the kind of impact that's going to have on morale, or this sense of paranoia that they are looking for someone to put on the chopping block, and that it could be you," another employee said.
Employees Insider spoke to say they would not be surprised if the hiring freeze is extended further. Google CEO Sundar Pichai had said on the earnings call in July that while it's slowing hiring, it's "focused on hiring engineering, technical and other critical roles."
"Volume has picked up and the busyness of the workday has picked up with how rough things have been," a contractor said. "I haven't heard of reductions, but there are definitely no additions."
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