Googlers reportedly grilled execs over low morale after staff missed out on pay rises while earnings surged

• Googlers have been grilling executives about compensation, CNBC reported.

• In April, Alphabet reported triumphant first-quarter earnings that surpassed analysts' estimates.

• One employee claimed they had noticed "a significant decline in morale."

Google execs have been facing tough questions from employees after the company reported blowout earnings last month.

In April, Alphabet reported triumphant first-quarter earnings that surpassed analysts' estimates and sent the stock soaring. The company reported a year-on-year revenue increase of about 15% and issued its first dividend of 20 cents a share.

Googlers wanted to know why the revenue boost wasn't leading to higher pay or an end to some of the company's cost-cutting measures, CNBC reported.

One comment posted on an internal forum before the meeting claimed there was "a significant decline in morale, increased distrust, and a disconnect between leadership and the workforce."

Another top-rated question reviewed by CNBC asked why Googlers had not received "meaningful compensation increases" despite the "company's stellar performance and record earnings."

In an all-hands meeting with Alphabet CEO Sundar Pichai and other top execs, Google's CFO Ruth Porat reportedly addressed some of the workers' comments. She said the company's priority was to "invest in growth," noting that "revenue should be growing faster than expenses," the report said.

Pichai reportedly followed up with a joke about holding a "Finance 101" TED Talk for employees.

A Google spokesperson told Business Insider most employees would receive a pay raise this year, which includes a salary increase, equity grant, and a full bonus.

The spokesperson added that Google was responsibly investing in the company's biggest priorities, which means continuing to hire for critical roles across the company.

Google execs have been fielding tough questions and employee criticism over the last year.

The company cut about 12,000 people in 2023 and started off 2024 with thousands more laid off from core engineering and hardware teams.

The rolling layoffs have angered employees — with some lashing out at leadership. Following a round of layoffs in January, some Googlers took public aim at what they described as "glassy-eyed leaders" and organized protests in response.

During the all-hands, Pichai told workers the company had hired too much staff during the pandemic, per CNBC.

"We hired a lot of employees, and from there, we have had course correction," he said.

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