Prabhakar Raghavan, the head of Google Search, expects his team to move faster and in different directions as part of a new “cost” and “operational reality.”
That’s according to audio of Raghavan speaking during a Google meeting, obtained and first reported by CNBC.
A new reality. Google has been cutting costs and staff over the past year. Raghavan painted a pretty bleak view of Google, basically saying that the “good old days” are gone:
“I think we can agree that things are not like they were 15-20 years ago, things have changed.” “It’s not like life is going to be pretty, forever.” “What it means is that our growth in this new operating reality has to be hard-earned.”
challenges Google is under attack on many fronts. Some of what Raghavan highlighted:
More competition: Raghavan didn’t name any specific competitors, but OpenAI, Microsoft, Meta and many other companies are competing hard with Google to win the AI arms race.
Costs: Google is “spending a lot more on machines” because of generative AI.
Slow growth: The number of new devices hitting the world “isn’t what it used to be.”
Regulation: Google is “navigating a regulatory environment unlike anything we’ve seen before,” such as the European Union’s Digital Markets Act.
Internal bureaucracy: “The number of deals and approvals it takes to bring a good idea to market, that’s not the Google way. That’s not how we should operate.”
go faster Raghavan told his team to “know this moment” and “act with urgency,” adding:
“It won’t be easy. But these are the moments and the history of the industries that will define us”. “If there is a clear and current market reality, we need to do a faster contraction, like athletes move faster.” “There is something to be learned from this shorter-wavelength, faster contraction run.”
Twitch, or twitchiness, refers to an athlete’s ability to move their body rapidly or explosively in different directions during physical or high-intensity sports.
Why we care Google Search has come under a lot of criticism in recent years, much of it under Raghavan’s leadership. Many believe we are seeing the inevitable enshittification of Google, where Google puts profits above everything else, including its users. Appropriately, Raghavan referred to Google’s ad business as “the envy of the world.”
Speed and focus. In response to the leaked audio of the all-hands meeting, a Google spokesperson told CNBC:
About Raghavan. He is a senior vice president at Google, responsible for Google search, ads, and many other Google products. Raghavan was promoted to his role in June 2020. Before joining Google, he was at Yahoo from 2005 to 2012, during which time Google rose and Yahoo declined rapidly.
