Saudi Press

Saudi Arabia and the world
Thursday, Dec 04, 2025

Google has outgrown its corporate culture. It is time to learn from its elders

Google has outgrown its corporate culture. It is time to learn from its elders

It may be just 21 years old, but Google is a fantastic company with amazing products and services, in the midst of a mid-life crisis. As so often in such cases, all seems well on the surface. Every day its search engine handles 6bn requests, YouTube receives 49 years’ worth of video uploads and Gmail processes about 100bn emails. Thanks to its monopoly of online advertising, Google’s parent company, Alphabet, made a profit of $34bn last year.
Beyond its core operations, it is a world leader in artificial intelligence (AI), quantum computing and self-driving cars. Along with the bosses of Amazon, Apple and Facebook, its chief executive, Sundar Pichai, was grilled this week by lawmakers in Washington, DC, who fret that America’s tech giants need to be restrained because they are so profitable. Crisis? What crisis?

Being hauled before Congress is, on the face of it, a sign of success. But it also marks a difficult moment for Google’s leaders: the onset of corporate middle age. This is a problem as old as business itself. How do companies sustain the creativity and agility that made them great, even as they forge a culture and corporate machine that is built to last?

For Google the transition is especially dramatic because its founders, Larry Page and Sergey Brin, tried from the start to build a firm in which this moment would never arrive. As Google prepared to go public in 2004 they declared that it was not a conventional company, and “we do not intend to become one”. They hoped playground-like offices, generous perks and a campus atmosphere would allow it to retain the agility and innovation of a startup as it grew. The appearance of wrinkles on the corporate forehead is an admission of failure.

The signs of ageing are apparent in Google’s maturing business, its changing culture and its ever-more-entwined relationship with government. Take the business first. The firm is running up against growth constraints in its near-monopolies of search and online-advertising tools. Its market share in search ads is around 90%. Unearthing other gold mines has proved difficult.

None of the ambitious “moonshot” projects into which Alphabet has poured billions, such as delivery drones and robots, has been a breakout success. To keep growing, Google is having to try to muscle in on the turf occupied by big tech rivals, such as cloud computing and enterprise software and services.

The cultural challenge is fuzzier but no less urgent for a firm that is proud of its unusual corporate character. The freewheeling ethos that was so successful in Google’s early days has become a liability.

It works much less well at scale. Google now has nearly 120,000 employees, and even more temporary contractors. Doing things from the bottom up has become harder as the workforce has grown larger and less like-minded, with squabbles breaking out over everything from gender politics and the serving of meat in cafeterias to Google’s sale of technology to police forces.

The third sign of lost youth, the attention of trustbusters, has long looked inevitable. As big tech has grown, so have its interactions with government-as an institution to lobby, as a customer and as a regulator. America’s Justice Department is poring over Google’s online-ads businesses and may soon file an antitrust suit. Scrutiny is unlikely to wane as the tech titans break out of their silos and compete more. Indeed, regulators may take it as a sign of broadening power (see article).

How should Google respond? To be both innovative and mature is a hard trick to pull off. History is littered with failed attempts. In giving it a go, the firm has to decide who it puts its faith in: managers, investors or geeks?

The first route would involve taking a strong dose of managerial medicine to become a more tightly run conglomerate. The archetype for this approach is GE in its heyday under Jack Welch, who persuaded shareholders that sprawling businesses could work well, provided they were run by expert managers (see article). But it turned out that GE was disguising weaknesses in its industrial units by leaning on its financial arm, GE Capital.

GE’s subsequent woes offer a warning of the peril of relying on one hugely successful division to subsidise less profitable units elsewhere—as Google does with its advertising business.

If doubling down on the conglomerate model is not the answer, what about the opposite approach: spinning off, selling or closing some units and returning money to shareholders? That would please many investors. By some calculations, Alphabet is worth $100bn less than the sum of its parts. Spinning off YouTube would increase competition in internet advertising-a handy sop to regulators-as well as unlocking value. It might be worth more than Netflix, because it need not pay for content, most of which is user-generated. But the experiences of firms like AT&T and IBM highlight the danger that downsizing hollows out innovation. And while Google might hope to retain its distinctive culture in whittled-down form, the truth is that no matter how much it wants to be as youthful and free-spirited as Peter Pan, it is no longer a startup.

That leaves trusting the geeks. Becoming a glorified venture-capital outfit has appeal, but the woes of SoftBank’s Vision Fund warn of hubris. Google would do better to examine how two older tech giants overcame their own mid-life crises (and near-death experiences): Microsoft, nearly broken up by antitrust regulators, and Apple, which spent years in the wilderness before Steve Jobs returned to reinvent it as a maker of portable devices. Both bounced back by rediscovering their core purpose and applying it in a new way. Under Satya Nadella, Microsoft has reinvented itself as a provider of cloud-based software tools and services, rather than its Windows operating system. And Apple, previously known for its elegant, easy-to-use computers, has minted money by applying its genius to smartphones.

Could Google similarly identify what it does best and apply it in new areas? It could decide its mission is helping consumers trade their personal data for goods and services; or using AI to solve more of the world’s problems; or being the data processor of net-enabled gadgets. At the moment it is betting on almost everything. Indiscipline can lead to unexpected innovations, but more often saps vitality. Google’s best way forward is to follow the advice often given to victims of a mid-life crisis: slim down, decide what matters and follow the dream.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
As Trump Deepens Ties with Saudi Arabia, Push for Israel Normalization Takes a Back Seat
Thai Food Village Debuts at Saudi Feast Food Festival 2025 Under Thai Commerce Minister Suphajee’s Lead
Saudi Arabia Sharpens Its Strategic Vision as Economic Transformation Enters New Phase
Saudi Arabia Projects $44 Billion Budget Shortfall in 2026 as Economy Rebalances
OPEC+ Unveils New Capacity-Based System to Anchor Future Oil Output Levels
Will Saudi Arabia End Up Bankrolling Israel’s Post-Ceasefire Order in Lebanon?
Saudi Arabia’s SAMAI Initiative Surpasses One-Million-Citizen Milestone in National AI Upskilling Drive
Saudi Arabia’s Specialty Coffee Market Set to Surge as Demand Soars and New Exhibition Drops in December
Saudi Arabia Moves to Open Two New Alcohol Stores for Foreigners Under Vision 2030 Reform
Saudi Arabia’s AI Ambitions Gain Momentum — but Water, Talent and Infrastructure Pose Major Hurdles
Tensions Surface in Trump-MBS Talks as Saudi Pushes Back on Israel Normalisation
Saudi Arabia Signals Major Maritime Crack-Down on Houthi Routes in Red Sea
Italy and Saudi Arabia Seal Over 20 Strategic Deals at Business Forum in Riyadh
COP30 Ends Without Fossil Fuel Phase-Out as US, Saudi Arabia and Russia Align in Obstruction Role
Saudi-Portuguese Economic Horizons Expand Through Strategic Business Council
DHL Commits $150 Million for Landmark Logistics Hub in Saudi Arabia
Saudi Aramco Weighs Disposals Amid $10 Billion-Plus Asset Sales Discussion
Trump Hosts Saudi Crown Prince for Major Defence and Investment Agreements
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
Riyadh Metro Records Over One Hundred Million Journeys as Saudi Capital Accelerates Transit Era
Trump’s Grand Saudi Welcome Highlights U.S.–Riyadh Pivot as Israel Watches Warily
U.S. Set to Sell F-35 Jets to Saudi Arabia in Major Strategic Shift
Saudi Arabia Doubles Down on U.S. Partnership in Strategic Move
Saudi Arabia Charts Tech and Nuclear Leap Under Crown Prince’s U.S. Visit
Trump Elevates Saudi Arabia to Major Non-NATO Ally Amid Defense Deal
Trump Elevates Saudi Arabia to Major Non-NATO Ally as MBS Visit Yields Deepened Ties
Iran Appeals to Saudi Arabia to Mediate Restart of U.S. Nuclear Talks
Musk, Barra and Ford Join Trump in Lavish White House Dinner for Saudi Crown Prince
Lawmaker Seeks Declassification of ‘Shocking’ 2019 Call Between Trump and Saudi Crown Prince
US and Saudi Arabia Forge Strategic Defence Pact Featuring F-35 Sale and $1 Trillion Investment Pledge
Saudi Sovereign Wealth Fund Emerges as Key Contender in Warner Bros. Discovery Sale
Trump Secures Sweeping U.S.–Saudi Agreements on Jets, Technology and Massive Investment
Detroit CEOs Join White House Dinner as U.S.–Saudi Auto Deal Accelerates
Netanyahu Secures U.S. Assurance That Israel’s Qualitative Military Edge Will Remain Despite Saudi F-35 Deal
Ronaldo Joins Trump and Saudi Crown Prince’s Gala Amid U.S.–Gulf Tech and Investment Surge
U.S.–Saudi Investment Forum Sees U.S. Corporate Titans and Saudi Royalty Forge Billion-Dollar Ties
Elon Musk’s xAI to Deploy 500-Megawatt Saudi Data Centre with State-backed Partner HUMAIN
U.S. Clears Export of Advanced AI Chips to Saudi Arabia and UAE Amid Strategic Tech Partnership
xAI Selects Saudi Data-Centre as First Customer of Nvidia-Backed Humain Project
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
President Trump Hosts Saudi Crown Prince Mohammed bin Salman in Washington Amid Strategic Deal Talks
Saudi Crown Prince to Press Trump for Direct U.S. Role in Ending Sudan War
Trump Hosts Saudi Crown Prince: Five Key Takeaways from the White House Meeting
Trump Firmly Defends Saudi Crown Prince Over Khashoggi Murder Amid Washington Visit
Trump Backs Saudi Crown Prince Over Khashoggi Killing Amid White House Visit
Trump Publicly Defends Saudi Crown Prince Over Khashoggi Killing During Washington Visit
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
Saudi Arabia’s Solar Surge Signals Unlikely Shift in Global Oil Powerhouse
Saudi Crown Prince Receives Letter from Iranian President Ahead of U.S. Visit
Saudi Arabia’s Crown Prince Begins Washington Visit to Cement Long-Term U.S. Alliance
×