Google Inc. (NASDAQ: GOOG) has seemingly been immune from the economic malaise as of late. Its stock price has plummeted quite a bit from its 2007 highs, but the company continues taking internet search market share from the competition and it has a huge cash hoard its builds on every quarter.But, alas, Google can't be spending money like a drunken sailor all the time. The company has indicated that it will lay off about 100 recruiters from its ranks as well as shutting down three engineering offices. The company, barely a decade old, has 25,000 employees currently and with less PCs selling recently, the downflux of internet searchers may be causing it pause as it considers short-term strategy.
Google's entire income model is based on advertising revenue sharing, and one thing that is not on the upswing in the U.S. is the advertising industry. Consumers continue to slow buying, companies aren't selling goods and the marketing for those goods has dug itself a huge hole to jump into. Google's small labor reduction here is not indicative of its health -- the company is more robust than ever. But even the mighty Google can't change the world this time.
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Reader Comments (Page 1 of 1)
1-16-2009 @ 5:39PM
John Huckleberry said...
After eighteen years online and seeing a endless parade of search engines come and go I'll be glad to see the beast known as Google go and it will. Sell, sell, sell.