Google has been moderating and removing employees’ internal election-related conversations, CNBC has learned.
Ahead of Tuesday’s U.S. elections, Google executives warned employees to keep political opinions and statements away from a popular internal discussion forum called Memegen, according to correspondence viewed by CNBC. Despite the warnings, employees continued posting memes related to the election and criticizing the company’s policies on Tuesday.
The most recent leadership guidance shows the company is taking expanded action to temper internal political discussions. Google CEO Sundar Pichai on Monday sent a memo reminding employees that people turn to the company’s services for “high-quality and reliable information.” That includes through the company’s Google Search, Google News and YouTube services.
“Whomever the voters entrust, let’s remember the role we play at work, through the products we build and as a business: to be a trusted source of information to people of every background and belief,” Pichai wrote. “We will and must maintain that.”
As one of the most important tech leaders in the U.S., Pichai himself has been pulled into the broader political discussions of late. Republican nominee Donald Trump claimed to have multiple phone calls with Pichai in recent weeks.
Google has been cracking down on internal conversations since 2019 when the company introduced a policy barring employees from making statements that “insult, demean, or humiliate” their colleagues. The rules also discouraged employees from engaging in a “raging debate over politics or the latest news story.”
That policy signaled a significant culture shift for the company. Some employees pushed back against the restrictions, saying they were too broad, and in 2020, the company said it was expanding its internal content moderation practices, requiring employees to more actively moderate internal discussions, CNBC found at the time.
Since 2021, Google has dealt with internal dissent regarding Project Nimbus, which is a $1.2 billion joint contract with Amazon to provide the Israeli government and military with cloud computing and AI services. Google briefly shut down an internal message board this March after employees posted comments about the company’s Nimbus contract.
In a 2019 settlement, the U.S. National Labor Board ordered Google to post a list of employee rights at its headquarters that included the right to discuss workplace conditions. That came after a former Google employee filed a complaint alleging that the company restricted free speech and fired him for expressing conservative views, which Google refuted.
The company declined to comment.
Banning political discussions
Google announced more updates to its Memegen guidelines in September that included broadening the forum’s restrictions against political discussions, according to internal documents viewed by CNBC. The company also said it would ban employees from the platform if they violate policies three times, and Google said that it would also also use artificial intelligence technology to better detect violative content.
“Memegen will no longer allow posting of personal political opinions, including national policy/events, geopolitical content (eg, international relations, military conflicts, economic actions, territorial disputes, and other international affairs unrelated to Google), or sharing related news with or without commentary,” one document said.
Political debates have driven the “vast majority” of content removals, one document of the expanded policies said.
“Memegen isn’t a place for personal political opinions or statements,” reads a yellow banner that Google recently added at the top of Memegen, according to images viewed by CNBC.
One employee wrote that Google’s internal community management team, or ICMT, took down their meme, which they didn’t feel was violative. Many memes viewed by CNBC included messages such as “sending support” and “encouragement” to fellow employees. Others poked fun at the company’s expanded policy and the ICMT.
“This meme is a political statement please report to ICMT immediately,” one meme said. Another read: “Make Election Day a holiday to give ICMT a break.” Another meme just said “aaaaaaaa” overlaid on a black void.
Read Google CEO Sundar Pichai’s full memo to employees below
Hi Googlers, Tomorrow is election day here and many in the U.S. will be heading to the polls to vote for everything from school board to judges to the Congress and President.
Teams across Google and YouTube have been working hard to make sure our platforms provide voters with high-quality and reliable information, just as we’ve done for so many other elections around the world — in fact, dozens of countries have held major, hotly contested elections this year, from France to India to the UK to Mexico and many more, with well over a billion people casting votes in 2024.
We should be proud of our work, and also of our teams’ efforts to keep campaigns secure, to deliver accurate information on where and how to vote, and to provide digital advertising solutions to campaigns. Thanks to everyone working around the clock on these efforts throughout the campaign season and as votes are tallied.
As with other elections, the outcome will be a major topic of conversation in living rooms and other places around the world. And of course, the outcome will have important consequences. Whomever the voters entrust, let’s remember the role we play at work, through the products we build and as a business: to be a trusted source of information to people of every background and belief. We will and must maintain that. In that spirit, it’s important that everyone continue to follow our Community Guidelines and Personal Political Activity Policy.
Beyond election day, our work to organize the world’s information and make it universally accessible and useful will continue. Al has given us a profound opportunity to make progress on that mission, build great products and partnerships, drive innovation, and make significant contributions to national and local economies. Our company is at its best when we’re focused on that.
Workday CEO Carl Eschenbach walks to a morning session at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, on July 14, 2023.
Kevin Dietsch | Getty Images
Workday shares slipped as much as 11% in extended trading Tuesday after the human resources and finance software maker issued a quarterly forecast that came in below Wall Street projections.
For the fiscal fourth quarter, Workday called for an adjusted operating margin of 25% on $2.03 billion in subscription revenue. Analysts polled by StreetAccount were looking for a 25.5% margin and $2.04 billion in subscription revenue.
Here’s how the company performed during the fiscal third quarter compared with the consensus among analysts surveyed by LSEG:
Earnings per share: $1.89 adjusted vs. $1.76 expected
Revenue: $2.16 billion vs. $2.13 billion expected
Workday’s total revenue grew about 16% year over year in the quarter ended Oct. 31, according to a statement. Subscription revenue totaled $1.96 billion, up around 16%, consistent with the $1.96 billion consensus among analysts surveyed by StreetAccount.
The company reported net income of $193 million or 72 cents per share, up $114 million or 43 cents per share in the same quarter a year ago. The adjusted operating margin for the quarter was 26.3%. StreetAccount had expected 25.4%.
In some parts of the world, Workday is still facing more deal scrutiny than usual, Workday’s finance chief, Zane Rowe, said on a conference call with analysts.
Now the company is looking to grow its business in the U.S. government, CEO Carl Eschenbach said. “We think there’s a huge opportunity there with probably more than 80% of HCM and ERP still on premises,” he said, referring to human capital management and enterprise resource planning.
Earlier this month, President-elect Donald Trump announced plans for an advisory panel called the “Department of Government Efficiency.”
“People are absolutely looking to drive more economies of scale and more efficiency,” Eschenbach said.
Workday said Rob Enslin, the former Google and SAP executive who stepped down as UiPath CEO in June, was joining as president and chief commercial officer. In October, Workday told employees that Doug Robinson, a co-president, will retire.
During the quarter, Workday acquired contract lifecycle management software startup Evisort. Workday also said artificial intelligence agents for spotting inefficiencies, filing expense reports and updating succession plans would become available in early access in 2025.
“We think they’re going to have a nice impact on bookings and revenue as we go into the new year,” Eschenbach said.
Rowe called for $8.8 billion in fiscal year 2026 subscription revenue, good for 14% growth.
As of Tuesday’s close, Workday shares were down 2% in 2024, while the S&P 500 index had gained 26%.
Dell Technologies forecast fourth-quarter revenue and earnings below Wall Street expectations Tuesday, despite bullish commentary from the company on AI sales growth. The PC maker reported quarterly earnings Tuesday that beat analyst expectations for earnings per share but came up light on overall revenue.
Shares fell 10% in after-hours trading.
Here’s how Dell did for the fiscal third quarter versus LSEG consensus estimates for the quarter ending Nov. 1:
Earnings per share: $2.15 adjusted versus $2.06 expected
Revenue: $24.4 billion versus $24.67 billion expected
Net income climbed 12% to $1.12 billion, or $1.58 per share, from about $1 billion, or $1.36 per share, in the year-ago period. Overall revenue increased about 10% from $22.25 billion a year ago.
Dell said it expected between $24 billion and $25 billion in revenue during the fourth quarter, less than LSEG expectations of $25.57 billion. It said it expected $2.50 in adjusted earnings per share, versus expectations of $2.65 per share.
Chief Operating Officer Jeff Clark told investors on the earnings call that growth from AI will change from quarter to quarter.
“This business will not be linear, especially as customers navigate an underlying silicon roadmap that is changing,” Clark said.
The company’s shares have risen 86% so far in 2024 as investors realize it’s one of the most important companies selling tools and systems for artificial intelligence developers.
Dell is a top vendor for computer clusters required to develop and deploy artificial intelligence, especially computers based around Nvidia chips. It competes against other server makers such as Super Micro Computer and Hewlett Packard Enterprise, as well as manufacturers in Asia.
Demand for Nvidia’s AI accelerators remains high from cloud providers, enterprises, and government institutions, who often buy systems installed with tens of thousands of AI chips. Dell sells the completed systems.
This year, Nvidia CEO Jensen Huang gave Dell and its founder, Michael Dell, a shout-out as the company to contact to place orders for its new Blackwell AI chips.
Dell executives said some of the demand from its customers was shifting to later quarters, waiting for Nvidia’s next-generation Blackwell chips, which are in production now but have yet to ship to end-users in large quantities.
“We saw in Q3 a pretty rapid shift of the orders moving towards our Blackwell design,” Clark said.
Dell said much of its AI system growth was already reflected in a $4.5 billion pipeline of future orders.
“We’re only in the very early innings of enterprises learning how to deploy AI,” Clark said.
Dell’s AI server sales are reported in the company’s Infrastructure Solutions Group, which includes AI servers, storage, networking components, and traditional servers. The group’s revenue rose 34%, mostly driven by AI sales, to $11.4 billion.
The strongest part of Dell’s ISG business was its servers and networking subsidiary, which includes AI systems. Revenue rose 58% to $7.4 billion. Dell shipped $2.9 billion in AI servers during the quarter, and the company said during the quarter that customers had booked $3.6 billion of future AI server orders.
The company said increased AI server orders boosted demand by “double digits” for its traditional servers, which are less power-hungry and based around CPU chips from Intel or AMD, and can free up room or power inside data centers for companies investing heavily in AI infrastructure.
The company’s computer storage systems grew less strongly than servers, rising 4% to $4 billion. The overall ISG unit is more profitable, thanks to sales of pricier AI systems.
Dell’s Client Solutions Group, which sells PCs and laptops to consumers and enterprises, declined 1% on an annual basis to $12.1 billion.
While commercial clients buying PCs for their workforces rose 3% on an annual basis to $10.1 billion, the company’s sales from PCs to consumers fell 18% on an annual basis to $2 billion.
Furniture waste is a growing concern as consumers and companies seek to reduce carbon emissions. In the U.S. alone, we throw out roughly 12 million tons of furniture every year, according to the Environmental Protection Agency, leaving it to rot in landfills. Most of it is less than fifteen years old. Recycling furniture can be difficult, mostly because selling and moving it is such a pain.
Apparel companies like Poshmark, Dpop and Thredup are thriving in online thrifting, but furniture thrifting is a lot more complicated, simply due to the size of the items. Craigslist and Facebook Marketplace list furniture, but it’s up to the consumers to figure out how to pick up and deliver the items. That can be costly and potentially dangerous, with strangers inviting strangers into their homes.
AptDeco is offering a new business model. The New York-based startup is an online marketplace for buying and selling used furniture that provides pick-up and delivery for items. It also works with major retailers, like West Elm and Pottery Barn, to sell floor models or resell items that have been returned.
“By extending the lifecycle of furniture, overall it’s just better for the environment, whether it be less wood being chopped out of forests to just the supply chain associated with producing that furniture,” said Reham Fagiri, founder and CEO of AptDeco.
For big furniture retailers, there is big waste in returns and the reverse logistics involved — from the costs to the transportation emissions. Instead, partner brands are now selling their returned items on AptDeco as soon as a customer requests a return, directly from the customer’s home. AptDeco uses its own resale data to price items to sell quickly, often within a week. They can then retrieve the item from the returner’s home and deliver it directly to a resale buyer, bypassing the need to take these returned items to a distribution center first.
Kathleen O’Brien bought her dining room table, TV console and headboard from AptDeco.
“The world is kind of on fire, literally, and so anything that I can do to reduce my own footprint in the world is what I’m trying to do, like in all aspects of my life and furniture specifically,” said O’Brien.
While the furniture sells at as much as a 50% discount to new, the service comes at a price.
“We earn a percentage that ranges from 15% to as high as 60% depending on the product, the brand, the condition, and a lot of different variations that go into it,” said Fagiri.
The company operates everywhere in the U.S. except Alaska and Hawaii. The company’s carrier network across so many markets makes its expansion potential very attractive to investors like Initialized Capital.
“Contributing to the circular economy through their logistics business is a great example of the types of climate adaptation companies that we see as having longevity in the next phase of climate tech,” said Zoe Perret, a partner at Initialized Capital,
AptDeco is also backed by Comcast Ventures, Y Combinator, Hearst Lab, Great Oaks Venture Capital and Soma Capital. It has raised $14.5 million in total funding so far.
In the 10 years since its launch, Fagiri says the company has offset over 19 million pounds of carbon dioxide from the environment. That’s equivalent to roughly 6.5 million cars taken off the road.
CNBC producer Lisa Rizzolo contributed to this piece.