Google to employees: no $20,000 bonuses this year

Google, Inc. (NASDAQ: GOOG) employees who were counting on those luxurious $20,000 bonuses may have expectations that won't be fulfilled this year. Instead of handing out large bonuses as in the past, the world's largest search company is handing out Google-powered cellphones instead.

Even Google needs to watch its nickel in this kind of economy. The company is used to giving away free meals and massages to its employees along with all other kinds of unheard-of perks. But, it isn't immune to the slowdown in consumer and business spending currently causing a recession for the U.S. (and, in fact, globally). There's nothing wrong with a $400 Google smartphone. In fact, employees of many companies would be glad to get a $400 gift from their employer.

The Google Android smartphone has been configured to work on any GSM carrier in the world, so at least those Google employees receiving one won't be tied to using it with T-Mobile here in the U.S. or a single carrier somewhere else in the world. While layoffs in the tech sector are still happening (and will continue), Google employees who have to forgo a hefty bonus this year and instead receive a new smartphone should still count their blessings. One day, Google's storied perks will cease to exist when the next Google being incubated in a garage somewhere steals the power.