Google employees are expressing frustration over reduced compensation packages for 2025, with some staff questioning their smaller pay increases despite the company’s strong financial performance, Business Insider reported.
At a recent company all-hands meeting or how Googlers call it monthly TGIF (Thank God It’s Friday) meetings, employees could send in their questions and others could vote. The question that was voted the most to be answered was why employees had seen decreased equity grants and overall compensation, even though Google posted a healthy financial performance.
John Casey, Google’s vice president of global compensation and benefits, attempted to address these concerns by stating that over 80% of employees would see a year-on-year increase in their compensation.
Business Insider learned that the compensation reductions appear strategic, with Casey explaining that some employees in less technical roles received smaller equity packages to “calibrate pay to local markets.” A Google spokesperson confirmed that the 2025 compensation cycle mirrors last year’s approach.
Google CEO Sundar Pichai emphasises on need to “move faster as a company”
The pay cuts come amid a challenging period for Google. The company has undergone multiple layoffs and faces increased competition and regulatory scrutiny. CEO Sundar Pichai recently emphasized the critical nature of 2025, highlighting the need to “move faster as a company” and navigate “disruptive moments.”
While Google maintains it offers “extremely competitive pay,” employee morale appears to be declining. Also, this isn’t the first time employees have voiced their concern over decreased pay.
Last year, some employees reported base pay increases lower than 3%, compared to historical increases of 8-10%. Even employees with strong performance ratings have seen total compensation packages drop, including reduced base salaries, minimal bonus changes, and lower equity rewards.One manager described the current compensation adjustments as reflecting the “new economic reality,” with base increases being the lowest in a decade.
