At a companywide all-hands meeting this week, Pichai was faced with tough questions from employees related to cuts to travel and entertainment budgets, managing productivity, and potential layoffs. The firm is convinced that a sharp growth slow will impact advertising revenues, its main source of income.
Pichai was trying to justify why the company was taking drastic cost-cutting measures while profits remained strong. Alphabet (GOOGL, $98.74) announced in late July a net income of $16B for the second quarter. Quarterly revenue increased 13% to $69.7B.