Broken Code: The Changing Face of Employment at Google
CEO Sundar Pichai transformed Google from a dream employer to one of nightmares. Google’s once vibrant culture became one where people were demotivated, filed grievances, and unionized. Google transitioned from a celebrated employer with a hard-charging and innovative work ethic to one facing significant employee dissatisfaction and public scrutiny due to massive layoffs and perceived mismanagement. Despite Google earning $60 billion in profits in 2022, Pichai announced layoffs of 12,000 employees in January of 2023 via a chilling email. Some employees immediately lost access to their offices or computers, while others received the announcement while on vacation or medical leave. This case examines Google’s internal tensions and challenges and their impact on company culture, employee morale, and external reputation. The discussion emphasizes the impact of leadership decisions on corporate culture, the balance between strategic objectives and employee well-being, and strategies for maintaining a positive employer brand during crises.
Upon completion of this case, students will be able to:
1. Analyze the relationships between organizational cultures and mass layoffs through the lens of the psychological contract between leaders and employees.
2. Evaluate the impact of layoff decisions on organizational culture, employee morale, employee motivation, and identity.
3. Evaluate ethical strategies for managing layoffs and their implications on a company's reputation.
4. Propose ways to manage employee reactions during workforce reductions that minimize negative impacts on morale and maintain organizational commitment.
5. Develop recommendations for restoring and enhancing corporate culture and employer branding.