Google Terminating Contractors, Including 500 Recruiters

Reports are surfacing that Google has begun eliminating some of its 10,000 contract workers, trimming expenses in the face of a declining stock price and slow online ad growth. Included in that number, according to several sources, including Daya Baran, president of The Web Guild, are 500 recruiters.

The company signaled in October during its third quarter financial presentation that it intended to reduce expenses. Sergey Brin, co-founder of Google, told The (San Jose) Mercury News, that the company had a plan to reduce its contract workforce by improving its vendor management, converting some contractors to employees and “other approaches.” “It’s really high,” the newspaper quoted Brin as saying of the number of contractors.

Google reported in its most recent filing with the Securities and Exchange Commission that it has 20,123 employees. Among the 10,000 contractors are cafeteria workers, bus drivers, groundskeepers, off- and on-site programmers, and technical workers and others.

In a CNET story this week, Google spokeswoman Jane Penner didn’t provide a specific number of the contractors to be let go, but was quoted saying, “We have 10,000, and we have had a plan in place for awhile to significantly reduce that number.”

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While the news may be hitting contractors hard, it’s creating opportunity for recruiters. A few have started posting contact information on sites where stories about the layoffs are appearing.

As for the laid off recruiters, one person posted to the Web Guild blog that they signed non-disclosure agreements prohibiting them from discussing their work with Google and, presumably, the terms of their termination.

John Zappe is the editor of TLNT.com and a contributing editor of ERE.net. John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.

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1 Comment on “Google Terminating Contractors, Including 500 Recruiters

  1. Hopefully most of those contractors are converted to full-time and are able to keep plugging away with Google. If anyone in the technical or recruiting field is interested in positions with our clients or internally on my recruiting team respectively please feel free to get in touch.

    We are local to Orange County California and I know there is a Google here in Irvine.

    Sloane Barbour
    Practice Manager
    Atlantis Partners
    949-553-4200
    sloane.barbour@atlantisp.com

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