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Nov 26, 2008

Google Plans Layoffs of Nearly 1/3 of the Workforce

Google Is Mortal

I reported skeptically on this issue earlier, but let's call a spade a spade. Google used its contractor workforce to quickly scale without having to spend on permanent employees, and now, it's using that same workforce to cut back costs. I've heard from a fair number of "laid off" contractors, in particular in Europe, and the reality is simply that: Google's use of contractors outstripped the company's ability to leverage them to the bottom line, and something had to be done. How much of this has to do with slowing growth? Hard to say, but it's also hard to say that growth was not slowing. The world is in crisis, after all.

It's a smart move by Google (control operating costs without hurting core employee base), but from the point of view of the folks effected, it's layoffs nevertheless. Google most likely will grow past these cuts in its contractor workforce in the coming year(s), but the cutback is just that, a cutback. Cnet has more here.

Google Plans Layoffs of Nearly 1/3 of the Workforce

According to WebGuild, Google has been quietly laying off hundreds of "employees" since August and had not reported it, getting around a legal requirement because most of these individuals were considered temporary contractors, thereby being considered "operational expenses." Those impacted...

1 comment:

  1. The world is different today compared to the past (compared to even just a year ago). The constant march of technology makes it possible for a smaller work force to do virtually the same job as a larger workforce. As white collar employees are handed pink slips, an employer like Google, a bank or a brokerage may be prudent to generously retain their e-mail records. The records are a valuable asset to the employer, relating to intellectual property, project management, customer relationships and more. --Ben http://legal-beagle.typepad.com/wrights_legal_beagle/2008/10/retain-e-mail-of-former-employees.html


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