Google cuts 200 staff in ad slump
GOOGLE has announced it is cutting 200 jobs as the search giant continues cutting costs while producing multi-billion-dollar profits.
The layoffs are the company’s biggest ever, but still represent only a small proportion of its overall workforce of 20,000.
However it is seen as a sign that even profitable companies are being squeezed by the global downturn.
Google returned a profit of $US4.2 billion ($5.98 billion), with revenues topping $31 billion, but still needs to implement cost-cutting measures as its watches a steady drop in its comparatively stratospheric share price.
Google Inc. closed at $US353 in overnight trade.
Google is seen as vulnerable to the global recession because its revenue streams are largely tied to advertising spending, which is plummeting as the financial crisis drags on.
The latest layoffs are coming from Google’s division which sells its advertising. Previous cuts targeted contractors and recruitment specialists and eliminating a radio advertising division.
A company blog post said Google had simply hired too many staff during its rapid expansion. “Making changes of this kind is never easy – and we recognise that the recession makes the timing even more difficult for the Googlers concerned,” the company said.
Source: Google cuts 200 staff in ad slump | Business Breaking News | News.com.au
Categories: Google Tags: advertising, Adwords, Google, profit
