Despite regular quarterly profits of several billion dollars and a cash pile as high as Everest, Google’s recent revenue growth is reportedly a matter of some concern to its leaders and one it’s apparently now in the middle of tackling.
With so many ambitious projects on the go inside the still-growing company, it’s perhaps of little surprise that spending may have gotten a little out of hand, though according to a Wall Street Journal report this week, the Web giant is now seeking to streamline its business in a bid to boost profits.
According to the Journal’s sources – among them unnamed recruiters and venture capitalists – part of Google’s effort includes cutting back on hiring, with 1,819 Googlers added in the first quarter of this year, noticeably fewer than its 2014 quarterly average of 2,435.
The Journal’s report also explains how different departments within the company used to enjoy a fair amount of freedom to take on new recruits, while now they have to prove to executives that additional staff are essential for a project’s progression and successful implementation.
As an example, hiring for Google+ has reportedly been suspended, while Google’s smart-home unit, Nest, has been given more attention and resources to expand.
Even expenses for things like travel and special events have come under scrutiny, sources said.
Ruth Porat, who joined Google as its chief financial officer in May, is thought to be the key figure behind the changes, and could be “looking to make her mark on what has become a more stable but more complex company,” the Journal said.
The fact is, many of Google’s projects are yet to generate revenue and require ongoing investment to help steer them toward their respective goals. While Porat will obviously be aware of this and looking to plan for the long-term, the executive nevertheless appears eager to trim any fat from Google’s overall operation and make every dollar count.