JANUARY 15, 2009

Google Plans 100 Layoffs of Recruiters

By JESSICA E. VASCELLARO
Wall Street Journal

http://online.wsj.com/article/SB123197784922483617.html


Google Inc. said it is laying off 100 recruiters and is closing some 
engineering offices, as the downturn continues to take its toll on the 
Internet giant.

The layoffs, disclosed Wednesday in a company blog post, are a very rare 
step for Google, which said in October that it is still hiring but much 
more cautiously. The company has also recently let go a significant 
number of contractors in areas ranging from public relations to engineering.

Google linked the reductions affecting company recruiters to the 
recession. "Given the state of the economy, we recognized that we needed 
fewer people focused on hiring," wrote Laszlo Bock, Google's vice 
president for People Operations on Google's blog.

"Our first step to address this was to wind down almost all our 
contracts with external contractors and vendors providing recruiting 
services for Google. However, after much consideration, we have with 
great regret decided that we need to go further and reduce the overall 
size of our recruiting organization by approximately 100 positions."

Google spokesman Matthew Furman said the closing of engineering offices 
in Texas, Norway and Sweden wasn't motivated by cost cutting and that 
Google will offer jobs to the 70 employees affected by the changes. Alan 
Eustace, Google's senior vice president for engineering and research, 
wrote in a blog post that the moves would help Google better coordinate 
its efforts across different geographic areas.

Mr. Furman added that the 100 recruiters let go represents less than a 
quarter of Google's total recruiter population. "Overall, we will be 
working with [those recruiters] to try to locate them other jobs at 
Google," he said.

He said that the company didn't have plans to announce any further cuts 
at this time. In recent months, Google has taken measures such as 
reducing the hours of its food service and giving employees cellphones 
instead of year-end cash bonuses.

During Google's third-quarter earnings call in October, Google Chief 
Executive Eric Schmidt said that the company would continue to keep a 
close eye on costs. So far, Google's search-advertising business has 
held up well, in part because its advertising is more cost-effective 
than other forms of online ads.

As of November, Google had 20,123 full-time employees.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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