Tuesday, November 25, 2008

Google Lays off 10,000 ???

I try to not get too caught up in the news, gossip and media frenzy when it comes to the economy, war and anything else that contributes the the downfall of society, economy and/or our country in general. I find it`s easy to get so worked up that I carry the news with me, and it can have a really negative impact on my generally enthusiastic and positive attitude. So, typically I prefer to just "stay out of it" as much as possible. HOWEVER, I just found this too noteworthy not to share.
Just do a quick search for "Google lay`s off 10,000" and you`ll see 1,000`s of results... Google`s own SERP is showing webGuild: http://www.webguild.org/2008/11/google-layoffs-10000-workers-affected.php as the top story.

In a nutshell:

"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."

My conclusion:

In a nation wide economic downturn, it`s no surprise Google, or anyone else, is making a dramatic change, especially like cutbacks for what seems to be mostly recruiters (if you`re cutting back, what do you need recruiters for?). What I find appalling are the other allegations:

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.

Is it true? Is it not true? You decide.

No comments: