Multiple award winning employer, Google shows the world that it is after all not recession proof after deciding to layoff some 10,000 people currently employed by the company.
However, permanent staff with the company will count themselves lucky as the 10,000 figure only involves contract and temporary workers.
The workers affected are those employed on contractual terms (and full time basis), and their employment does not come with all the generous benefits other personnel are enjoying.
The layoff was reported to have begun back in August 2008 but it is being done in a ‘silent mode’, as not many people are aware of the development. Under the US law, a company must make its layoff plan public but Google has found a way around it by classifying the contract workers under the ‘operational expenses’. With the classification, the company can hire employees with minimum wage, and provides no medical benefits, no insurance, and no stock options.
The move to layoff the contract workers also means that Google will not have to spend much money regulated on retrenchment compensation plan.
Altogether, more than 30,000 employees are currently working with the internet giant, with two-third of them employed on permanent basis.
Fortune named Google as the Best Company to Work for 2008. It was also ranked as the Number 1 Employer for MBA Graduates, as well as the Most Innovative Company, both for 2008.
Other posts you may want to read:
- Google To Lay Off For The First Time
- Employment Difference: Casual Vs Temporary Vs Part Time
- Gov Contract Staff Now Daily Wage Earners
- Google is the Best Company To Work For
- Rumour On Microsoft Layoff Spreading
- UK Unemployment in Dangerous High
- No Retrenchment in Goverment: HR Minister
- eBay To Lay Off 10% Staff
Author's bio: Zul is the founder and principal contributor for the SKOR Career blog. He is the author of two books, The Malaysian Job Seeker's Dilemma and Buat Duit Tanpa Kerja Makan Gaji (How to Make Money Without a Job), available in major book stores nationwide. You can reach him at zulkiflimusa[at]gmail.com.
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3 comments ↓
During recession, most companies cut down their advertising budget. I think this is the reason why Google’s growth might be a bit slower if compared to the time prior to the recent recession.
However, companies should actually reallocate their advertising budget. Internet marketing can easily convey messages to the younger generation. More budget should be allocated for online marketing. I don’t see that happening in Malaysia.
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Zul reply on December 17th, 2008:
I agree. The country often belongs to the latter flocks when it comes to capitalizing better (and cheaper too) technology.
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[...] another note there were news in the market that Google is silently laying off staff. The workers affected are those employed on contractual terms (and full time basis), and their [...]
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