Thursday, March 26, 2009

Layoffs at Google

UPDATE 1:05PM: Here's the blog post about the cuts, penned by SVP Omid Kordestani.

Changes to our sales and marketing organizations

3/26/2009 12:20:00 PM
Google has grown very quickly in a very short period of time. When companies grow that quickly it's almost impossible to get everything right—and we certainly didn't. In some areas we've created overlapping organizations which not only duplicate effort but also complicate the decision-making process. That makes our teams less effective and efficient than they should be. In addition, we over-invested in some areas in preparation for the growth trends we were experiencing at the time.

So today we have informed Googlers that we plan to reduce the number of roles within our sales and marketing organizations by just under 200 globally. Making changes of this kind is never easy—and we recognize that the recession makes the timing even more difficult for the Googlers concerned. We did look at a number of different options but ultimately concluded that we had to restructure our organizations in order to improve our effectiveness and efficiency as a business. We will give each person time to try and find another position at Google, as well as outplacement support, and provide severance packages for those who leave the company. Finally, I would like to take this opportunity to thank everyone affected for all they have contributed to Google.

Posted by Omid Kordestani, Senior VP, Global Sales and Business Development

UPDATE 12:15PM: I just heard the layoffs are not huge and will affect primarily the online sales organization, which comprises Adwords and Adsense.

Here's something gloomy. I just got word from a source that Google is going through workforce reductions numbering in the hundreds. Not sure how many will be affected, but these changes will affect full-time staff. My source says some positions have been eliminated while others are being "reassigned," meaning they will have 60 days to find a new position within the company. If they can't find anything, they will lose their jobs.

Google has gone through a few rounds of cuts recently. Earlier this year Google cut 100 recruiters and trimmed down its radio advertising team. Late last year cut 10,000 contractors. It seems no company is recession proof.

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