Google Layoffs: A Sign of the Times - November Rumors
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In November of 2008, an Internet news media website claimed that it had an inside source that had given a tip-off that Google was preparing to layoff 10,000 of its employees. Reportedly, they were able to achieve this behind a closed door by using lawyers looking for loopholes. The idea was that they would hire employees as “temporary workers,” not give them benefits, and move them around the company so that they could not be considered employees.
The news claimed that these employees were “off the books” and did not contribute to the 20,000 full-time employees that Google claimed. The extra 10,000 brought Google’s numbers up to 30,000, but as far as Wall Street was concerned, the work of 30,000 was being done by 20,000. Google did not have to declare these layoffs since they were not considered full-time employees.
Naturally, there was a great shock as this news sunk in to the Internet community. Google had never had a layoff before, so it was shocking that they would suddenly lay off a third of a workforce that nobody had even known existed. Equally naturally, some people were skeptical. It did not help that the news article had attacked Google for using underhanded tactics and employing hundreds of lawyers in a search for loopholes.
As it turned out, the article was not entirely accurate. Regardless of any rumors, Google made no effort to hide the fact that it employed 10,000 employees who were not full-time. This included interns, part-time workers, and contractors. Contractors are a popular group in the IT world, and are essentially self-employed. As such, they willingly enter into temporary agreements with companies that may not include any benefits other than hourly wages. It is also typical for contractors to be the first ones cut from their jobs when a company is seeking to reduce costs.
Despite Google closing an office in Phoenix in September, the overall reaction to the news was that there was no need for alarm. Yes, the times were hard and Google might have to cut back, but there was no real worry that they would actually throw away a third of their workforce.
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