This is overstating it by a lot. Jeff was the AI lead at the time, and there was a big conflict between management and the ethics team
And I actually think Google needs to pay more attention to AI ethics ... but it's a publically traded company and the incentives are all wrong -- i.e. it's going to do whatever it needs to do keep up with the competition, similar to what happened with Google+ (perceived competition from Facebook)
Morality is not there to be useful, right or wrong in moral sense are normative categories not utilitarian ones.
But what you possibly may mean is really AI ethics self-regulation by large tech corporation does not work. (If that was your intended statement, I'd agree.)
Isn't it crazy how the media can do that? It really doesn't matter how much good you do in the world if your enemies speak louder. At least in the public's perception.