Google Inc to layoff 5,000 employees

Posted By: Staff
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San Francisco, Jan 9: Just a day after Mitsubishi decided to slash 2000 temporary employees,  the reports of Google Inc to jettison over 5,000 temporary workers. Reason: Obviously Global Recession. 5000 temporary employees will loose job though the Internet search leader still intends to spend billions of dollars during the next two years on product research, development and acquisitions.

The spending plans were outlined in a regulatory filing that also provided some clues about the magnitude of a recent payroll purge targeting Google's legion of contractors and other workers who aren't considered full-time or part-time employees.

The filing to the Securities and Exchange Commission was submitted on Dec 15, but it was made on paper, leaving it unavailable through the various Web services that track reports to the agency. The Associated Press obtained a copy of the records this week.

A key section of the filing is being kept confidential because Google maintains it contains trade secrets, but the publicly accessible parts provide some information that hadn't previously been disclosed.

Google acknowledged in late Nov that it planned to significantly reduce the number of its contractors and retain all of its full-time employees. Although the company's revenue is still rising, Google's growth has been decelerating.

The recession has caused consumers to shop less frequently on the Internet and advertisers have trimmed their marketing budgets. Those factors have slowed the money flowing to Google because online ads generate virtually all the company's revenue, which is expected to total about $20 billion in 2008.

OneIndia News (With inputs from Agencies)


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