Major companies are cutting back on perks in the face of a sliding economy.
CEOs at major companies like Alphabet and Meta Platforms are pushing employees to increase production and focus on getting more accomplished with less support, The Wall Street Journal reports.
In sharp contrast to the pandemic when companies emphasized flexibility and promoted benefits, CEOs seem to be taking a stricter approach. During and directly after the pandemic and shutdown, many companies catered to current and potential employees, wooing them with “swag bags” and bonuses. Now, businesses are starting to sign a different tune.
One perk that could be on the chopping block is remote work. Leaders at Meta and Alphabet’s Google, for example, have expressed concern about productivity of remote workers. Meta is encouraging managers to report low performing remote workers.
Google recently announced to employees that it would be slowing the hiring program and urged employees to “work with more hunger,” the Journal reports.
Some companies are considering cutting back on free “swag” provided to employees, such as T-shirts. Perks like business dinners and gifts are also endangered.
Manufacturing backlogs in China, complications from Russia’s invasion of Ukraine, and a potential recession in the U.S. could spell trouble for many major companies, causing businesses to look for ways to cut back on expenses.
Cutting back on frivolous expenses indicates that some CEOs are already concerned. Apple, Google, and Meta have already put the breaks on their hiring plans for this year. Other companies like Redfin and Robinhood Markets have announced layoffs.