Google Layoffs - 10,000 Workers Affected

[RichardG]

Source:
http://www.webguild.org/2008/11/google-layoffs-10000-workers-affected.php

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.

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.

Source:
http://www.reuters.com/article/businessNews/idUSTRE4AO1LI20081125?feedType=RSS&feedName=businessNews

Reuters) - Internet search giant Google Inc (GOOG.O: Quote, Profile, Research, Stock Buzz) said it is "significantly" reducing the number of contract workers it uses, but has no plans at this time to lay off employees, the Wall Street Journal said.

"We have been thinking for some time, before the acute phase of the economic crisis, about significantly reducing the number of contract workers," spokeswoman Jane Penner told the paper.

Google declined to specify how many contract workers might be cut, nor would Penner discuss the pace at which the company would terminate contractors, the paper said.

Google ended the third quarter with 20,123 company employees and about 10,000 contractors, according to the paper.

Google could not be immediately reached for comment by Reuters.

(Reporting by Sakthi Prasad in Bangalore; Editing by Rupert Winchester)

 

[The_Unbeliever]

Sickening to know that companies will use these kind of tactics to exploit cheap labour.

 

[Other Pineapple Smurf]

Well the Google Code of Doing Business is still a mystery to all - its like Coke or KFC. As long as what it remains "secret" it will be successful.

 

[<moLe>]

so much for being the "good guy online"

 

[TelkomUseless]

Yea.. Do no evil...

 

[Vegeta]

Most very successful companies are so successful because they know how to work the corner like a $20 ho.
But Google is still the good guy online why not?

 

[<moLe>]

probably true, but ha ha always only hear of how happy the "Google employee's" and all that.. but yeah compared to the the viral yahoo and MS scum they are still nice