Reports have been flying about the Web that Google is set to lay off 10,000 workers. The news stemmed from a WebGuild Silicon Valley report that “since August, hundreds of employees have been laid off,” about 500 of them recruiters. But there’s more to the story than that. Turns out the layoffs are hitting contract workers only–no full-time Google staffer will get the axe–and 10,000 is probably a bit of an exaggeration.
The 10,000 number comes in only because that’s how many temp staffers Google employs (full-time staff numbers 20,123). It doesn’t mean Google’s letting all 10,000 go. In fact, during its October 3Q earnings report, Google founder Sergey Brin addressed the topic. As reported by the San Jose Mercury News at the time, Brin revealed that Google has 10,000 contract workers, a number he considered “really high.” As a result, he planned to take a hard look at it over the next 6 months to significantly reduce it through “vendor management, converting some contractors to regular employees, and other approaches.”
CNET also reports that the contractor restructuring has been going on for a while, quoting Google spokeswoman Jane Penner saying:
“We have 10,000 [contractors], 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.”
So the news isn’t as bleak as it appears. While yes, Google is letting some contractors go, it’s also looking to change the status of others. Reports say Google won’t reveal actual numbers, but it’s probably a lot less than 10,000.
