Google To “Significantly Reduce Contractors”

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According to CNET,  Google is going to make a major reduction in the 10,000 contractors they use:

“We have 10,000, and we have had a plan in place for awhile to significantly reduce that number, This is something we’ve been thinking about for awhile–six or seven months. It predates the most acute phase of the (present economic) crisis.”

In an interview, Google co-founder Sergey Brin said the company has been concerned about its high contracting expense. Brin said Google augments its workforce of 20,123 employees with about 10,000 contractors.

“It’s really high,” Brin said of the number of contractors. He said Google began looking at the number six months ago and has a plan to significantly reduce that number through vendor management, converting some contractors to regular employees, and other approaches.

Whether the contractor cutting predates the economic downturn or not, Google’s been cutting cost a plenty as of late, a few days ago Google announced that it was reducing its budget for holiday parties and travel for its executives.

About Michael Berkens

Michael Berkens, Esq. is the founder and Editor-in-Chief of TheDomains.com. Michael is also the co-founder of Worldwide Media Inc. which sold around 70K domain to Godaddy.com in December 2015 and now owns around 8K domain names . Michael was also one of the 5 Judges selected for the the Verisign 30th Anniversary .Com contest.

Comments

  1. RegFeeNames.com says

    Good to hear its only contractors that they are talking about.

    Google’s head count is still small compared to companies like Microsoft – They shall have to make a cut somewhere because of decline in advertising revenue but I think that come 2010 they shall have doubled there workforce.

    Regards,

    Robbie

  2. Mike @ WannaDevelop.com says

    Google is just like any other company now… Need to really make investors feel happy and secure about the way they are doing things and they were a bit disorganized and out of control as productivity was pretty good at some parts of the company and some were just nowhere to be found… probably 90% revenues came from 10% of their staff but that always changes when there are shake ups such as this… Hopefully a better and stronger Google will arise after all said and done few Q’s ahead 🙂

  3. Reece says

    Admittedly I know very little about Google, however I was shocked to find out how many employees they have… Looking at how much Brin + Page accomplished on their own when they started out, makes me really side with Mike (2nd poster), wondering what percentage of their staff is creating the large majority of their revenue.