BUSINESS BLOGS
BUSINESS BLOGS
category: business
24 Nov 2008

The inevitable is happening: Google to lay off people, up to 10,000 affected.  Here is a look at Google’s headcount:

Google reports to the SEC that it has 20,123 employees but in reality it has 30,000. Why the discrepancy? Google classifies 10,000 of the employees as temporary operational expenses or “workers”. Google co-founder Sergey Brin said, “There is no question that the number (of workers) is too high”.

So who has been cut?

Google has been quietly laying off staff and up to 10,000 jobs could be on the chopping block according to sources. Since August, hundreds of employees have been laid off and there are reports that about 500 of them were recruiters for Google.

Google is the Web bellwether, so in a way, it’s good that they get this done to start the recovery.   The longer Google sought to avoid the inevitable, the harder the landing.  The only question now is: how steep is the decline and when will the landing come?

Still: madness.  10,000 people laid off from a company that generated $17B last year in revenues… with $10B in cash… but with a stock at 40% of its year-ago high, you knew this was coming.