Google has confirmed it is reducing its 10,000-strong
contractor workforce.
The company is facing an increasing lack of immunity to the
current economic crisis as internet advertising revenues are
hit.
It says it has been looking for some time at reducing its
contractor workforce. Contractors are easier to shed because they
work on a freelance basis and do not have the same benefit
entitlements as full-time employees.
Google looked as though it might be
strong enough to beat the economic downturn, but a high cost
base is not helping as revenues start to dip. Company growth is
slowing and this has been reflected by falls in its share
price.
The company said, "As we made clear when we announced our
quarterly results in October, Google is still hiring but at a
reduced rate.
"We have been reducing the number of contractors for over a
year."