Google Layoffs – 10,000 Workers Affected
By Daya Baran at November 23, 2008 95 Comments|
By law, Google is required to report layoffs publicly and with the SEC however, Google has managed to get around the legal requirement. In fact, one of the ways Google was able to meet Wall Street’s Q3 earnings expectations was by trimming “operational” expenses. Google reports to the SEC that it has 20,123 employees but in reality it has 30,000. Why the discrepancy? Google classifies 10,000 of the employees as temporary operational expenses or “workers”. Google co-founder Sergey Brin said, “There is no question that the number (of workers) is too high”. The classification affords Google several advantages such as: 1) Hire full time employees without full time benefits. The classification enables Google to pay them above minimum wage, provide no health benefits, no insurance coverage, no stock options, and no offer of permanent employment. 2) By under-reporting actual employee headcount, Google looks good to Wall Street. A low headcount gives the illusion that productivity per employee is more than it actually is, which in turn looks good in the eyes of Google shareholders which is ultimately good for Google’s stock in the short term. So, how does Google get around the SEC requirement regarding material information? Google has hundreds of lawyers figuring out how not to get caught. One of them is by moving workers from job to job every few months so that their status remains temporary. That is why you probably have never spoken to the same person twice at Google and that is also why there is somebody new on the job and most times you know more about their job than they do. A bulk of the workers have been there for up to five years and many know others who had been there for seven years or more moving from job to job. There is no question the economic downturn is hitting Google hard and with the slowdown in online advertising, their troubles are just beginning. Related: Google Layoffs: 6000 Gone Related: SAP Layoffs Related: Major IBM Layoffs |
Tags:
google, layoffs, Online Advertising, Search
95 Comments
[...] Related: Google Layoffs [...]
[...] Related: Google Layoffs [...]
wow your sources are good. my friend was a recruiter at google and they laid off 500 recruiters. they were asked to sign non-disclosures and not to speak about it ever or … what an evil company http://vcsandangels.com/blog/?p=21632
They laid off 1,000 plus employees last week http://www.fuckedstartups.com/2008/10/23/leaks-google-to-slash-1000-employees/
If search takes a hit they are screwed – they won’t recover – their customers would like nothing more than to see them fail.
[...] søkemotorannonsering blir påvirket av den globale finanskrisen. Nå viser det seg at Google i stilhet har jobbet med å redusere bemanningen uten å måtte rapportere reduksjonene til [...]
So I guest the ridiculous conclusion to this unsubstantiated article is that to be successful, you should hire hundreds of lawyers to hide hundreds of employees. What is that, a ratio of one lawyer to one employee or something?
We were talking about this last month <a href= “http://www.buzzmakr.com/2008/10/3-signs-of-upcoming-googocalypse.html” 3 Signs of the Upcoming Googocalypse. Google has been looking at new, and not so flattering ways, of increasing it’s revenue. Cutting employees was bound to be the next step.
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
[...] – Google may lay off up to 10,000 employees, according to a WebGuild report. The layoffs began in August and so far, hundreds have been let go. While the Internet titan is [...]
Unbelievable! And this is supposed to be the model company for which everyone is supposed to strive!?
Thanks for sharing this information! I’ve shared with the Google Watchers online community. We’re a grassroots network of people who are concerned about Google violating its “Don’t be evil” policy. Please check it out and consider joining if stories like this one bother you like it does us!
[...] is the first I’ve heard of any layoffs at Google. Webguild is reporting that since August, Google has been laying off hundreds of [...]
Complete crap. They are canceling contractor relationships, like recruiters, during a time when no one is hiring.
What happened to WebGuild, you guys are suddenly like the tabloid gossip that is rarely true and always sensationalized. You just lost another subscriber. Write about that.
Barrons just issued a SELL on Google – Click volume and search ad pricing are under pressure, and so we are initiating coverage with a Sell rating http://online.barrons.com/article/SB122730102037848793.html?mod=googlenews_barrons
[...] Ok, some say layoff some say downsizing and still other say, “The Googocalypse is nigh!” Reclassifying workers as temporary so they can be shuffled about on the books to make things on paper look a bit better follows the trend of other more human-based companies. Some of these folks could be hired back as contractors. Anyway, I’m listing this as rumor since there’s nothing officially announced. Start reading more on webguild.org. [...]
I can confirm that Google is in major lay-off mode since August. The new CIO received commands from management to cut unncessary costs which he’s taken to mean cut everyone except maybe 50 people to run all of Google’s projects.
Note, you don’t want to hire most of those laid off. Most permanent Googlers were “managing” projects (e.g, taking 4 day weekends and showing up to work only to eat the free food and showed up barely to 1 or 2 meetings per week). The temps that were there for more than a year learned the same laziness and worthless work ethic.
If you’re looking for people with no real experience and who think it’s okay to steal a tray of bottle water provided by the company for everyone to drink… then go ahead and hire a Googler. Otherwise, be really careful and interview really in-depth about what they can and cannot do (and verify it).
[...] at Google? November 24th, 2008 Posted in Daily Dose Read this report this morning. Not sure how much truth there is to this. Getting rid of recruiters is a sure sign [...]
[...] WebGuild.com: “Google has been quietly laying off staff and up to 10,000 jobs could be on the chopping block according to sources. Since August, hundreds of employees have been laid off and there are reports that about 500 of them were recruiters for Google.” [...]
It is about time. Google is a one trick donkey.
[...] Google Layoffs – 10,000 Workers Affected Google has been quietly laying off staff and up to 10,000 jobs could be on the chopping block according to sources. _______________ Source: Webguild [...]
[...] inevitable is happening: Google to lay off people, up to 10,000 affected. Here is a look at Google’s headcount: Google reports to the [...]
No one is immune to the shock the economy is taking. Sadly I think there is more bad news to come.
sad –
hopefully they are not penalized
Isn’t this “contractor” situation no different than Microsoft, and other tech companies? Is it ethical, no.
[...] Say it isn’t so! Nov.24, 2008 in Bubble Burst SHARETHIS.addEntry({ title: “Say it isn’t so!”, url: “http://www.screwdd.com/2008/11/24/say-it-isnt-so/” }); Google has been quietly laying off staff and up to 10,000 jobs could be on the chopping block according to sources. Since August, hundreds of employees have been laid off and there are reports that about 500 of them were recruiters for Google. (WebGuild) [...]
Sounds to me like the Microsoft “permatemp” situation. Microsoft also would not count decreased contractor population as a layoff. I wonder if Google follows the same rules as Microsoft regarding the separations between contractors and full-time employees? If not, Google could expect a lawsuit in the future.
[...] then I see Google Layoffs – 10,000 Workers Affected which has already been read into far more than it should be. I actually think it can be good for [...]
Is it ethical? Are you guys serious? What company gets faulted for not continuing contracts for temps and other workers during a downturn? You guys are ridiculous. There is absolutely no proof to any of this, other than “sources say…”
I have a ton of friends at Google and while they are taking responsible measures to curb costs, there has been no “layoffs” whatsoever.
WebGuild has become ValleyWag with less accountability. This is silly.
[...] read an article today on the WebGuild’s website and if it is true it will affect over 10,000 people. This article states that Goolge has [...]
[...] a number of sneaky tactics used to get around the SEC requirements. One of the methods according to WebGuild is by moving workers from job to job every few months so that their status remains temporary. In [...]
[...] WebGuild November 24, 2008 | jason | Financial Crisis, Layoffs, google | [...]
[...] the full article here: http://www.webguild.org/2008/11/google-layoffs-10000-workers-affected.php [...]
[...] As being said among analysts, the worst lies ahead, many layoffs will be occurring all around after the New Year – in January and February. Even Google is said to layoff. [...]
[...] Despidos en Google, 10.000 trabajadores afectados [Eng]www.webguild.org/2008/11/google-layoffs-10000-workers-affect… por http://www.com.es hace pocos segundos [...]
I how to say this except: you’re wrong.
With the economy collapsing Google’s bottom line will improve because they offer the most cost effective solutions.
Also, Google is extremely kind to their workers compared to the industry as a whole. Trimming the fat is a smart and prudent measure given the future insecurity and should be taken as a sign of Google’s health, not weakness.
LOTS of companies have temp and contract workers to keep their “headcount” low. I’ve been in this situation for almost 2 years with one company, 1.5 years with the company before that. We need national health coverage for exactly this reaons.
Whats with the picture? Any relation with the news?
Guess it means that they are living it up while the little guy suffers. They too were little guys once upon a time!
This sounds good -always get rid of temp workers that are not required during a downturn and do it before your competitors. Keep growing earnings as revenues fall and fall back to solid R & D and working products – grow search marketing, grow video ads and tempoarily stop 30-year programs that sound good but will not help right now till the economy comes back aftr which resume them as very long term vision is important.
[...] more obvious thing to blame is the rumor of big layoffs (10,000+) happening at Google. But it’s not yet clear if these are really layoffs at [...]
they will be little guys again
[...] details: Google Layoffs – 10000 Workers Affected [...]
[...] Tech and business sites are lighting up today with rumors of big layoffs at search giant Google. The most eye-catching story appeared on WebGuild, which cites anonymous sources claiming that up to 10,000 jobs “could be on the chopping block.” [...]
[...] Angaben von Webguild soll Google bis zu 10.000 Mitarbeiter entlassen. Um vor Aktionären und in der [...]
I have observed it for long time, 90% of google ads clicks are accidental clicks by inexperienced new internet users who confuse it with site links. These clicks don’t convert to sales……. except for low cost impulsive buy products/services…….
[...] Google deja ir, es decir, bota a mas de 10000 trabajadores, pues sabes que la crisis llegó a Silicone Valley, muy mal [...]
[...] to quickly assess details just based on the blogosphere, given all the Google hate out there. But WebGuild Silicon Valley offers a post claiming that Google’s 20,000 actual employees are paired with 10,000 more [...]
“We have 10,000, and we have had a plan in place for awhile to significantly reduce that number” Jane Penner, Google
Layoff story is true. Google just confirmed to CNET http://news.cnet.com/8301-1023_3-10107141-93.html
[...] Original: source reference [...]
[...] as you can imagine, I was disappointed to read that Google is being a little shady. In a blog from WebGuild yesterday (which was explored in more detail on PC World), anonymous sources claimed that the [...]
[...] Google Layoffs – 10,000 Workers Affected reports WebGuild with a bombastic title. I can beat that: all Google workers will be affected, at least emotionally. [...]
[...] be cut according to sources. Since August, hundreds of employees have been laid off. Source: http://www.webguild.org/2008/11/google-layoffs-10000-workers-affected.php. We definitely know that Google is controlling its spending and according to Google spokeswoman [...]
[...] is being reported that Google is set to lay off about one-third of it’s workforce. “Google has been [...]
[...] La crisis no pasa desapercibida para Google. Reportes indican que ya habrían dejado ir a 500 reclutadores, y que desde Agosto cientos habrían sido los despedidos. También dicen que 10.000 trabajadores estarían en la cuerda floja. Fuente. [...]
Your sources are wrong. Not one single person has been “laid off” at Google – there are many contractors whose contracts have not been renewed, that is all. Standard practice in a low-performing economy. The “extra” 10k headcount you mention refers to those contractors, not to full-time employees. This is also standard practice, not a dodge of SEC rules. Get a clue.
yeag.. the crisis affected is much of worth..
[...] or even surf the internet. It is bad, but this is one of the scariest news stories to me. Google layoffs, 10,000 workers [...]
[...] Haberin kaynağı webguild.org [...]
[...] has covered Techmeme, VentureBeat, WebGuild, and others today amidst speculation that Google layoffs are coming… and 10,000 workers are [...]
You know what’s really really sad? This stupid tabloid posts making to the front page of NYT’s blogrunner and getting a huge traffic, with hundreds of douchebags bloggers echoing this crap everywhere, as if google was about to declare bankruptcy tomorrow…
even worse to see this social engineered post, with the title carefully crafted to bring traffic and increase the author’s payday: “Google Layoffs – 10,000 workers affected” (see? they’re not saying google will fire 10,000 people; it’s the stupid douchebags that misread the title that are saying…) This is called “manipulation”.
c’mon people, get real. We’re in the middle of the biggest crisis of the last century. EVERYONE is reducing costs and cutting out the “fat” (ie, temps). It’s the least google could do. No, the sky is not falling yet. No, 10,000 won’t be fired tomorrow. No, search is not suffering as much as display media. Yes, google has temps and external employees as everyone else in the market (where do you live that you never heard about it?)
To WebGuild: you just lost yet-another reader.
ok
[...] unknown wrote an interesting post today onGoogle Layoffs – 10000 Workers AffectedHere’s a quick excerptJesse Liebman | Social Media & Online Search Marketing | Portland Oregon linked here saying, ” search engine market share numbers are skewed as are” … Email Marketing Systems » Blog Archive » Consolidation In Search Marketing Industry … [...]
This kind of thing happens all the time.
Public companies are always searching for loopholes to keep as much of the expenses and bad assets “off the balance sheet” as they can.
The endless game of cat and mouse continues.
Alexander
[...] appear at first blush. The contractor cut story made the rounds Monday after publication of a Silicon Valley WebGuild story with the alarming headline of "Google Layoffs – 10,000 Workers Affected." The 10,000 [...]
[...] Another fellow blogger put an intriguing blog post on Google Layoffs – 10000 Workers AffectedHere’s a quick excerptEmail Marketing Systems » Blog Archive » Consolidation In Search Marketing Industry … […] November 24th, 2008 at 1:46 pm; alexander -social media guy said… This kind of thing happens all the time. … [...]
[...] Another fellow blogger added an interesting post on Google Layoffs – 10000 Workers AffectedHere’s a small excerptEmail Marketing Systems » Blog Archive » Consolidation In Search Marketing Industry … […] November 24th, 2008 at 1:46 pm; alexander -social media guy said… This kind of thing happens all the time. … [...]
[...] has its own layoff tracker. On Monday, the fear of massive job cuts reached manic heights; a site called WebGuild reported that as many as 10,000 people could be affected by a coming round of layoffs at Google (GOOG). [...]
[...] Rumor of the day today is that even Google is not as immune to the recession as we used to believe with 500 people already laid off and a total of 10 thousand to be affected as well. And while the blogosphere is actively engaged in a conversation about the huge number of layoffs, everyone agrees that the rumor is most probably wrong and the number of people will not reach anything near 10,000. [...]
[...] just read this news in one of the blogs & confirmed the same on CNET as well. Yes, You get it right, Google may layoff 10,000 people as [...]
[...] – CNET, WebGuild อ้างอิงจากเว็บไซต์ : [...]
Rabidly anti-Google nuts would like to believe it is something bigger than it really is. You don’t need recruiters in this economy and the company has far too many redundant people from acquisitions. They are rethinking their site expansion plans just as McD’s and Starbuck’s have. People at the no longer needed sites are no longer needed as well. Big deal!
[...] Related: Google Layoffs – 10,000 Workers Affected [...]
People always hate to talk about when they are laid off. But as it has become every day’s news headline since Yahoo started it with cutting 1500 of its task force last year, now a need of platform has been in demand where people can express their selves in words how they are feeling about their company, whey the got laid off was that justified or not. And every thing they want to tell anonymously.
And http://www.layoffgossip.com is providing you that platform.
[...] or reorganization to their operation. Microsoft has been good at adhering to the law unlikely Google which been devising creative strategies to avoid disclosing to the SEC and DOL about layoffs. [...]
[...] to 10,000 jobs could be on the chopping block according to sources,” writes Daya Baran. Can I just say it? No. Google will not dump 10,000 of its roughly 30,000 workforce. [...]
[...] November 23, 2008 we reported that Google has been quietly laying off staff since August and up to 10,000 jobs could be on the [...]
[...] Related: Google Layoffs – 10,000 Workers Affected [...]
[...] November 23, 2008 we reported that Google has been quietly laying off staff since August and up to 10,000 jobs could be on the [...]
More layoffs. $@%^#!
I’ve been covering the Pfizer and Oracle layoffs on The Daily Anchor, and as a follow up today I wrote an article on tips for finding a job in a recession. Don’t get me wrong, there’s no magic trick for finding a job right now, but there are some things you can do to at least increase your chances of finding an opportunity and landing an interview…
“What to Do if You’ve Been Laid Off: Finding a Job in a Recession”
http://www.thedailyanchor.com/2009/01/15/what-to-do-if-youve-been-laid-off-finding-a-job-in-a-recession/
[...] Related: Google Layoffs – 10,000 Affected [...]
[...] situaci
Murphy’s Law especially the 3rd one, ” Whatever can go wrong will go wrong, and at the worst possible time, in the worst possible way”
Check out an interesting and exciting game of “layoff survival” check out http://www.crootpad.com , a fun way to see different options to survive layoff.
I was a sub of Google and an employee of Myconsoft and recently my project got over with Google. I need to know if any other company is hiring these days ?
Do you know, How many more people got laid off ? My friend and me work for myconsoft and we got laid off from google.
[...] a massive drop in profits, and is at least in the middle of a hiring freeze. Or is it that they’ve been secretly and quietly laying off tens of thousands of employees over the last few months? I’m not sure, but I’d bet Sergey Brin can tell [...]
I heard there is a better search engine in the making. The release date is July 2009.
hello
Google has just opened a data center in Lenoir,NC, employing 200. They were give mucho $incentives to build there, not only by Caldwell County and Lenoir, but by the state of NC. Let’s see how long they last there.
As far as I know Google is closing the plant http://www.roughtype.com/archives/2008/12/no_work_on_the.php after it received the $100 million tax break http://www.thewhir.com/blog/Isabel_Wang/Google-Data-Center-in-NC
[...] EC2 and reports strong financials, it seems like the only news I am hearing out of Google is about layoffs, cutting services, and yet unreleased cloud initiatives like GDrive and support for Java on [...]
[...] Related: Google Layoffs [...]
[...] Published November 24, 2008 Business , Uncategorized Tags: google, layoffs, recession Google’s Quiet layoffsGoogle’s playing a dangerous game by having thousands of employee’s classified as [...]
[...] [1] Google Layoffs – 10,000 Workers Affected [2] Google Layoffs: 6000 Cut – Details Kept Off Web [3] Google Layoffs | digital thoughts [4] [...]