Purse tightening begins at Google - Biggest Tech News Of 2008

[VelMurugan]

Purse tightening begins at Google

Meltdown has left none, not even the world's top tech brand Google remains unscathed. In a cost cutting mode, the Internet search giant Google is cutting its famed `generous perks'.

Google, known for hosting the most extravagant holiday parties and pamperimg its employees with free food and drinks on the house, has gone into a strict cost saving mode.

Company's cost cutting programme include cutting new projects, ratcheting back spending, chipping away at perks and reducing employee strength. The austerity measures came in as Google's revenue growth has slowed down dramatically over the past one year.

Google also scaled back its holiday celebrations this year due to a global economic downturn and an ever-expanding workforce that had grown to 20,000 in October.

Not only this, the Web giant gave employees mobile phones instead of cash gifts this Christmas as it reins in costs during the recession. About 85 per cent Googleites got handset powered by Google's Android operating system as a holiday gift. Last year, Google handed out $1,000 cash gifts to most employees.

Company's chief executive Eric Schmidt said that Google has adopted such necessary actions in wake of current turbulent times. He added that the company will no more give an engineer 20 people to work with on certain experimental projects.

Source : IndiaTimes