Google Layoffs: A Sign of the Times - Google in 2009
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Come January, 2009, Google was finally forced to do the ultimate evil: its first layoff. Fortunately, Google’s cut of 6,000 contractors left it in good standing to make minimal cuts to its full-time work force. Due to the economy, Google had made a policy shift to cut back on its recruiting and hiring. Although it was still hiring (better than many companies), it was just going to slow the rate.
Unfortunately for Google’s recruiters, fewer hires meant less of a need for people to do the hiring. On January 14, 2009, Google announced that it would be laying off 100 full-time recruiters in addition to closing down three engineering offices around the world. The engineers from those offices would be offered jobs elsewhere in Google and were not being laid off, simply asked to move.
Google had started by terminating contracts with external recruiters, but the measures had simply not been enough. They were forced to cut about a quarter of their full-time recruiters. The individuals laid off were hoping for another position at Google, and the company was helping out by putting them in the system for internal hiring. It is likely that the majority of them will stay on with Google, but the fact remains that their jobs were cut originally.
Throughout the economic downturn, Google had managed relatively well. However, a sign that it was having trouble staying afloat was its decreasing stock prices. In November, the stock price fell below $300 for the first time in three years. It has struggled to rise since then. Although it has seen a recent gain to $338, this is a far cry from its high of $714.87.
The result of all of this is that there has been a general disillusionment regarding Google. It really is a normal company like all others, and it is subject to the tides of the economy. As a young company, it was inevitable that it would face a trial like this. So far, it has done well with the trial and minimized the damages appropriately. What will be telling is what happens in the future. Will Google come out of the economic recession with its engineers still cranking out profit-generating applications, or will it see a complete overhaul that could completely change its corporate image? Only time will tell.
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