Google CEO defends desk-sharing policy, says some offices are like a ‘ghost town’
Alphabet CEO Sundar Pichai gestures during a session at the World Economic Forum (WEF) annual meeting in Davos, on January 22, 2020.
FABRICE COFFRINI | AFP | Getty Images
Google CEO Sundar Pichai defended the cloud unit’s new desk-sharing policy for employees, describing some of the company’s offices as practically empty and reminding staffers that real estate is pricey.
“To me it’s obvious that they are trying to be efficient and save money but at the same time also utilize resources,” Pichai said in a companywide meeting last week, according to audio obtained by CNBC. “There are people, by the way, who routinely complain that they come in and there are big swaths of empty desks and it feels like it’s a ghost town — it’s just not a nice experience.”
Pichai’s comments follow a CNBC report last month about Google’s plan to ask cloud employees and partners to share desks at the division’s five largest locations, which include New York and San Francisco. The company is calling the downsizing effort Cloud Office Evolution (CLOE).
On Alphabet’s fourth-quarter earnings call in early February, executives said they expect Google to incur costs of about $500 million in the current period related to reduced global office space, as the company reckons with slowing revenue growth and ongoing recession concerns.
Pichai indicated that there are many people coming to the office “only two days a week,” which he said makes for an inefficient use of current space.
“We should be good stewards of financial resources,” Pichai said. “We have expensive real estate. And if they’re only utilized 30% of the time, we have to be careful in how we think about it.”
At the same all-hands meeting, Anas Osman, Google Cloud’s strategy and operations vice president, said about one-third of employees were coming into the offices at least four days a week, citing data from a pilot the group conducted in regards to returning to physical locations.
As part of the pilot, Osman said, employees were given the option of having a dedicated or a shared desk.
“Those one-to-one desks actually were utilized roughly 35% of the time at four days or more,” Osman said. “We think this is a good balance of how to both find efficiencies and create a better experience.”
In some ways, sharing also led to more productivity, he said.
“The data from the pilot shows that Googlers reported significantly better collaboration when they had assigned days in the office even if that was in a rotational model and a shared desk,” Osman said.
Pichai said the new policy is just for cloud employees at the moment, and added that the company is “giving teams freedom to experiment.” The cloud division makes up roughly a quarter of the company’s overall workforce.
During the meeting, Pichai addressed employee concerns regarding the rollout of the desk-sharing policy and how it was communicated to the workforce. CNBC previously reported that memes started showing up in the internal Memegen system criticizing the messaging from leadership. One popular meme said, “Not every cost-cutting measure needs to be word mangled into sounding good for employees.”
In responding to questions and comments submitted by employees, Pichai read one that said, “double speak is disrespectful and frustrating,” and “bad things happen, no need to make every bad thing sound like a miracle.”
Pichai said in response, “I agree with the sentiment here. The feedback is valid.”
“We should always strive to be as straightforward as possible,” Pichai said. “I think it’s important to understand at our scale, pretty much all communication are public in nature. You’re speaking to the world and there are many, many stakeholders and so at times, nuance is important and words can have a material impact and I think sometimes you see that reflected in some of the communications.”
A Google spokesperson didn’t immediately respond to a request for comment.
The Hims app arranged on a smartphone in New York on Feb. 12, 2025.
Gabby Jones | Bloomberg | Getty Images
Hims & Hers Health shares closed up 5% on Tuesday after the company announced patients can access Eli Lilly‘s weight loss medication Zepbound and diabetes drug Mounjaro, as well as the generic injection liraglutide, through its platform.
Zepbound, Mounjaro and liraglutide are part of the class of weight loss medications called GLP-1s, which have exploded in popularity in recent years. Hims & Hers launched a weight loss program in late 2023, but its GLP-1 offerings have evolved as the company has contended with a volatile supply and regulatory environment.
Lilly’s weekly injections Zepbound and Mounjaro will cost patients $1,899 a month, according to the Hims & Hers website. The generic liraglutide will cost $299 a month, but it requires a daily injection and can be less effective than other GLP-1 medications.
“As we look ahead, we plan to continue to expand our weight loss offering to deliver an even more holistic, personalized experience,” Dr. Craig Primack, senior vice president of weight loss at Hims & Hers, wrote in a blog post.
A Lilly spokesperson said in a statement that the company has “no affiliation” with Hims & Hers and noted that Zepbound is available at lower costs for people who are insured for the product or for those who buy directly from the company.
In May, Hims & Hers started prescribing compounded semaglutide, the active ingredient in Novo Nordisk‘s GLP-1 weight loss medications Ozempic and Wegovy. The offering was immensely popular and helped generate more than $225 million in revenue for the company in 2024.
But compounded drugs can traditionally only be mass produced when the branded medications treatments are in shortage. The U.S. Food and Drug Administration announced in February that the shortage of semaglutide injections products had been resolved.
That meant Hims & Hers had to largely stop offering the compounded medications, though some consumers may still be able to access personalized doses if it’s clinically applicable.
During the company’s quarterly call with investors in February, Hims & Hers said its weight loss offerings will primarily consist of its oral medications and liraglutide. The company said it expects its weight loss offerings to generate at least $725 million in annual revenue, excluding contributions from compounded semaglutide.
But the company is still lobbying for compounded medications. A pop up on Hims & Hers’ website, which was viewed by CNBC, encourages users to “use your voice” and urge Congress and the FDA to preserve access to compounded treatments.
With Tuesday’s rally, Hims and Hers shares are up about 27% in 2025 after soaring 172% last year.
WATCH: Hims & Hers shares tumble over concerns around weight-loss business
Meta CEO Mark Zuckerberg holds a smartphone as he makes a keynote speech at the Meta Connect annual event at the company’s headquarters in Menlo Park, California, on Sept. 25, 2024.
Manuel Orbegozo | Reuters
Meta’s head of artificial intelligence research announced Tuesday that she will be leaving the company.
Joelle Pineau, the company’s vice president of AI research, announced her departure in a LinkedIn post, saying her last day at the social media company will be May 30.
Her departure comes at a challenging time for Meta. CEO Mark Zuckerberg has made AI a top priority, investing billions of dollars in an effort to become the market leader ahead of rivals like OpenAI and Google.
Zuckerberg has said that it is his goal for Meta to build an AI assistant with more than 1 billion users and artificial general intelligence, which is a term used to describe computers that can think and take actions comparable to humans.
“As the world undergoes significant change, as the race for AI accelerates, and as Meta prepares for its next chapter, it is time to create space for others to pursue the work,” Pineau wrote. “I will be cheering from the sidelines, knowing that you have all the ingredients needed to build the best AI systems in the world, and to responsibly bring them into the lives of billions of people.”
Vice President of AI Research and Head of FAIR at Meta Joelle Pineau attends a technology demonstration at the META research laboratory in Paris on February 7, 2025.
Stephane De Sakutin | AFP | Getty Images
Pineau was one of Meta’s top AI researchers and led the company’s fundamental AI research unit, or FAIR, since 2023. There, she oversaw the company’s cutting-edge computer science-related studies, some of which are eventually incorporated into the company’s core apps.
She joined the company in 2017 to lead Meta’s Montreal AI research lab. Pineau is also a computer science professor at McGill University, where she is a co-director of its reasoning and learning lab.
Some of the projects Pineau helped oversee include Meta’s open-source Llama family of AI models and other technologies like the PyTorch software for AI developers.
Pineau’s departure announcement comes a few weeks ahead of Meta’s LlamaCon AI conference on April 29. There, the company is expected to detail its latest version of Llama. Meta Chief Product Officer Chris Cox, to whom Pineau reported to, said in March that Llama 4 will help power AI agents, the latest craze in generative AI. The company is also expected to announce a standalone app for its Meta AI chatbot, CNBC reported in February.
“We thank Joelle for her leadership of FAIR,” a Meta spokesperson said in a statement. “She’s been an important voice for Open Source and helped push breakthroughs to advance our products and the science behind them.”
Pineau did not reveal her next role but said she “will be taking some time to observe and to reflect, before jumping into a new adventure.”
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