Google Search head Prabhakar Raghavan discussed the recent changes at Google during an all-hands meeting and how the company is navigating challenges in the tech sector. According to a CNBC report, Raghavan mentioned that Google has had "really high highs and low lows" in the past three months.

Keeping Pace with Generative AI

Raghavan, who directly reports to CEO Sundar Pichai and oversees critical divisions such as search, ads, maps, and commerce, addressed Google's knowledge and information organization, comprising over 25,000 full-time employees.

Hinting at cost-cutting measures and Google's new approach, Raghavan mentioned that the company is investing significantly more in machines in a new cost reality with AI. Raghavan explained in a CNBC report that growth must be earned through hard work in this new operating reality because the influx of new devices has decreased, and organic growth is slowing down.

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"Faster-Twitch, Shorter Wavelength" Execution

The senior Google executive urged employees to "act with urgency" in response to market challenges and seize the moment that will shape the company's history and the industry. Raghavan's remarks convey the latest caution to employees regarding the increasing challenge of achieving growth for Google. Throughout his approximately 35-minute address, Raghavan interspersed his reality check with sports metaphors and calls to action, citing faster twitch like athletes do.

Raghavan referred to intensified competition and a more challenging regulatory landscape. While he did not mention specific competitors, Google is under pressure from entities such as Microsoft and OpenAI in generative artificial intelligence.

People turn to Google due to its trusted reputation. Despite the allure of new gadgets, individuals rely on Google to verify information, recognizing it as a trusted source, which becomes increasingly crucial in the era of generative AI.

Raghavan introduced some tangible changes during the announcement, including plans for building teams closer to users in crucial markets like India and Brazil and his intention to reduce the time his reports have to complete certain projects, aiming for a "faster-twitch, shorter wavelength execution." Sources familiar with the situation informed CNBC that Google's cloud business has instructed employees to adhere to shorter timelines despite resource constraints following cost cuts.

120 Hours/Week

Raghavan mentioned that Google needs to tackle its systemic challenges and develop new skills that may have been neglected. He commended the teams behind Gemini, Google's primary set of AI models, noting their increased dedication from working 100 to 120 hours per week to promptly address issues with Google's image recognition tool, enabling the team to resolve approximately 80% of the problems within ten days.

Raghavan also addressed concerns about the company's bureaucracy. Employees have long complained that Google's growing bureaucracy has significantly hindered their ability to launch products quickly as the workforce expanded rapidly during the pandemic. Alongside Google's annual survey, Googlegeist Pichai initiated a Simplicity Sprint in 2022 to gather employee feedback on efficiency. Raghavan emphasized that the numerous agreements and approvals needed to bring ideas to market are not in line with Google's ethos. He stated that leaders are actively streamlining the hierarchy, echoing previous comments from Pichai. Raghavan acknowledged Google's learning curve in recent quarters and emphasized the importance of the company's response and how it is learning from past challenges.

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