Former Google CEO Eric Schmidt has criticised Google's work culture, particularly its emphasis on remote work and work-life balance, as key reasons why the tech giant has fallen behind in the race to develop artificial intelligence (AI). Schmidt shared his views during a recent talk at Stanford University, where he was interviewed by Professor Erik Brynjolfsson and students.
During the discussion, the host pointed out that despite Google’s early advancements in AI, such as a breakthrough in 2017, the company has since lost its edge to competitors like OpenAI and Anthropic. "They’ve kind of lost the initiative to OpenAI, and even the last leaderboard I saw, Anthropic’s Claude was at the top of the list," Brynjolfsson remarked.
In response, Schmidt emphasised that his views were personal, as he is no longer a Google employee. He expressed concern that Google’s decision to prioritise work-life balance, including allowing remote work, has led to a decline in the company’s competitive edge. "Google decided that work-life balance and going home early, and working from home, was more important than winning. And the startups, the reason startups work is the people work like hell," Schmidt said bluntly.
Schmidt argued that startups succeed because their teams work intensively, often without the flexibility that large corporations offer. He suggested that if university students were to start their own companies, they would not permit employees to work remotely or limit office attendance if they wanted to stay competitive. "I’m sorry to be so blunt," Schmidt added, reinforcing his belief that the intense work ethic found in startups is crucial for innovation and success.
Schmidt’s comments are part of a larger debate on remote work within the tech industry. While Google has recently mandated that employees return to the office at least three days a week, tracking attendance via office badges as part of performance reviews, Schmidt’s remarks highlight ongoing concerns that remote work might hinder creativity and productivity.
Other industry leaders, such as JPMorgan CEO Jamie Dimon, have also criticised remote work, particularly for its impact on creativity, spontaneity, and effective team management. As the tech industry continues to evolve, the balance between work-life flexibility and maintaining a competitive edge remains a contentious issue.