More Google Cost Cutting
November 25, 2008
Oh, goodness, Google is taking more steps in brogues, not Earth Shoes. The change can be seen in two recent announcements.
First, MSNBC picked up a Reuters story about Google’s scaling back of its holiday festivities. You can read “Even Google Isn’t in the Holiday Party Mood” here. We geese get a gaggle together, but Google’s parties trigger Craigslist.org postings. One way to save money is to trim the guest list from 10,000 to a more interesting number, perhaps Plank’s constant?
The second item concerns Silicon Valley’s favorite way to hold down head count: rentals or contractors. According to CNet.com, the GOOG is cutting its rental workforce. You can read “Google Cutting Contractor Workforce” by Stephen Shankland here. (This is a wacky url, so if the link goes dead, you will have to use the interesting CNet.com search engine.)
In my opinion, these changes are window dressing. Far more stringent actions will be rolling from the maw of Googzilla, probably after 2009 rolls around. Based on the unofficial sources I tapped, here’s what’s happening:
- Some products will be killed. Those underperformers and their shepherds may be given an opportunity to leave the Googleplex. It’s not exactly “firing”. I hear it will be more like you should find your future elsewhere.
- More cost controls will be slapped on certain units. One expensive activity is the flying of wizards hither and yon. In 2009, the bits will do the moving. The wizards will stay in their cubes or in their bean bag chairs.
- More aggressive sales in ads and other product centric units. I expect to see the knob cranked hard in the enterprise and education sector.
Will these changes provide significant benefits to the Google? In my opinion, the cash “freed up” will be used to keep the plumbing in tip top shape. The super wizards are safe, but the lesser wizards will have to show their smarts and create products and services that deliver clicks, money, ads, or some combination thereof.
Oh, Google’s new brogues have steel toes. If you go barefoot or wear sandals, times are changing. Remember, dear PR Googlers, this is my opinion. I don’t need you to tell me that these actions are no big deal. I beg to differ. Big changes are afoot in those shoes with the funny punched designs on their toes and their think leather soles. Don’t forget those steel toes either.
Stephen Arnold, November 25, 2008