Google employees scramble for answers after layoffs hit long-tenured and recently promoted employees
Sundar Pichai, CEO of Google
Anindito Mukherjee | Bloomberg | Getty Images
Google employees are scrambling for answers from leadership and from colleagues as the company undergoes a massive layoff.
On Friday, Alphabet-owned Google announced it was cutting 12,000 employees, roughly 6% of the full-time workforce. While employees had been bracing for a potential layoff, they are questioning leadership about the criteria for layoffs which surprised some employees, who woke up to find their access to company properties cut off. Some of the laid-off employees had been long-tenured or recently promoted, raising questions about the criteria used to decide whose jobs were cut.
Shortly after CEO Sundar Pichai’s initial email to employees Friday morning, Google’s search boss Prabhakar Raghavan sent an email to employees saying he “also feels the responsibility to reach out” and asking for them to save questions for next week’s town hall. There will be “bumps in the road” as the organization moves forward with the layoffs, Raghavan noted.
The company provided an FAQ for the layoffs, which CNBC has seen, but employees have complained that it doesn’t give much detail on many answers. Employees have flooded Dory, the company’s question-asking platform, and set up virtual communities to figure out who’s been laid off and why. Directors have been telling employees to hold questions for the town hall taking place next week.
Google did not immediately respond to a request for comment.
The scramble highlights the challenges Google could face in maintaining a supportive and productive company culture for its restive workforce of more than 160,000 full-time employees. Further confrontations are possible, as the company said it plans to lay off international employees but has yet to determine which ones.
So far in the U.S., employees have been laid off across business units including Chrome, Cloud, and its experimental Area 120 unit. Some employees working on the company’s artificial intelligence programs were also laid off, according to Bloomberg.
A list of top-rated inquiries from employees, viewed by CNBC, contained pointed questions for executives.
“How were the layoffs decided? Some high performers were let go from our teams,” one top-rated question read. “This negatively impacts the remaining Googlers who see someone with high recognition, positive reviews, promo but still getting laid off.”
“What metrics were used to determine who was laid off?” another top-rated question read. “Was the decision based on their performance, scope of work, or both, or something else?”
Another asked: “How much runway are we hoping to gain with the layoffs?” and “Would you explain clearly what the layoff allows Google to do that Google could not have done without layoffs?”
Another highly rated one questioned CEO Sundar Pichai’s statement, which said, “I take full responsibility for the decisions that led us here.”
“What does taking full responsibility entail?,” one employee asked on Dory. “Responsibility without consequence seems like an empty platitude. Is leadership forgoing bonuses and pay raises this year? Will anyone be stepping down?”
Some employees came together on their own, organizing ad hoc groups to try and get answers. Employees created a Google doc spreadsheet as a way to keep track of people who were laid off and which part of the business they worked in.
More than 5,000 laid-off employees started a Discord channel called Google post-layoffs, ranging in topics from venting to labor organizing and visa immigration. Some employees organized virtual Google meetings with people on video calls. Others tried to organize physical meet-ups.
Some turned to the company’s internal meme-generator as a means to connect with each other, for answers and for comfort.
One meme showed Mila Kunis from the film “Friends with Benefits.” Kunis spoke to the Google logo, saying the line: “The sad thing is, I actually thought you were different.” Another meme showed former President Bill Clinton gesturing the word “zero” with the title “Leadership paycut.”
“Alphabet leadership claims ‘full responsibility’ for this decision, but that is little comfort to the 12,000 workers who are now without jobs,” said Parul Koul, executive chair of Alphabet Workers Union-CWA in a statement Friday. “This is egregious and unacceptable behavior by a company that made $17 billion dollars in profit last quarter alone.”
Armis CEO Yevgeny Dibrov and CTO Nadir Izrael.
Courtesy: Armis
Cybersecurity startup Armis has raised $435 million in a funding round that values the company at $6.1 billion.
“The need for what Armis is doing and what we are building, in this cyber exposure management and security platform, is just increasing,” CEO and co-founder Yevgeny Dibrov told CNBC. There’s “very unique and huge demand right now, and we are continuing to grow.”
Goldman Sachs Alternatives’ growth equity fund anchored the investment, with participation from CapitalG, a venture arm of Alphabet. The security firm brought on Evolution Equity Partners as a new investor.
Armis helps businesses secure and manage internet-connected devices and protect them against cyber threats. The company chose Goldman’s growth fund due to its strong track record helping companies accelerate growth toward initial public offerings, Dibrov said.
“This is the partner for us to go to the next stage and continue to build here a real generational business to get to the Hall of Fame of cyber and SaaS businesses,” he said.
In September, Bloomberg reported that the company was exploring as much as seven stake offers. Dibrov told CNBC the funding round was an outcome of those talks.
Founded in 2016, Armis in August said it surpassed $300 million in annual recurring revenues. The California-based company achieved that milestone less than a year after topping $200 million in ARR.
Armis raised $200 million in an October 2024 funding round with General Catalyst and Alkeon Capital. Previous backers have included Sequioa Capital and Bain Capital Ventures. Armis also raised $100 million in a secondary offering in July.
Dibrov said Armis is aiming for an IPO at the end of 2026 or early 2027, but he said he’s in no rush and is waiting on “market conditions.” The company’s primary goal is to hit $1 billion in annual recurring revenue, he said.
“Going public will be before that,” he said.
WATCH: Tech meets policy: Cybersecurity collaboration necessary in the era AI, says Google engineer
Rick Smith, CEO of Axon Enterprises.
Adam Jeffery | CNBC
Axon Enterprise‘s stock plummeted 17% after the TASER maker missed Wall Street’s third-quarter profit expectations as it grapples with tariff constraints.
Adjusted earnings totaled $1.17 per share adj., falling short of a $1.52 per share forecast from LSEG. Adjusted gross margins fell 50 basis points from a year ago to 62.7%, which Axon attributed to tariff impacts.
Axon’s connected devices business, which includes its TASER and counter drone equipment, felt the biggest pinch during the first full quarter with tariffs. The business segment accounted for over $405 million in revenues, increasing 24% year over year.
“As long as tariffs stay in place, I view that as sort of a one-time adjustment,” finance chief Brittany Bagley said during the earnings call. “Now that’s baked into the gross margins.”
Bagley expects growth in the company’s software business to eventually offset margin losses long-term. Software and services revenues jumped 41% from a year ago to $305 million.
Total revenues grew 31% from a year ago to $711 million, topping the $704 million expected by analysts polled by LSEG. The U.S. accounted for 84% of sales.
The Arizona-based company reported a net loss of $2.2 million, a loss of 3 cents per share, versus net income of $67 million, or 86 cents per share in the year-ago period.
Axon lifted its full-year revenue outlook to $2.74 billion, from between $2.65 billion and $2.73 billion. FactSet analysts expected $2.72 billion at the midpoint.
The company expects revenues between $750 million and $755 million during the fourth quarter, which was above LSEG analyst expectations of $746 million.
Along with the results, Axon said it is acquiring Carbyne in a deal that values the emergency communications platform at $625 million. The deal is expected to close next year in the first quarter.
Axon shares have jumped more than 60% over the last year and are up 18% year to date as demand for its security tools accelerates.
“We are building an elite business that is still nowhere near its ultimate potential, and we are doing it with a team that is rapidly bought into the mission,” said Axon’s president Josh Isner on the earnings call.
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