Google has been quietly laying off staff and up to 10,000 jobs could be on the chopping block according to sources.
Google has been quietly laying off staff and up to 10,000 jobs could be on the chopping block according to sources. Since August, hundreds of employees have been laid off and there are reports that about 500 of them were recruiters for Google.
By law, Google is required to report layoffs publicly and with the SEC however, Google has managed to get around the legal requirement. In fact, one of the ways Google was able to meet Wall Street’s Q3 earnings expectations was by trimming “operational” expenses.
Google reports to the SEC that it has 20,123 employees but in reality it has 30,000. Why the discrepancy? Google classifies 10,000 of the employees as temporary operational expenses or “workers”. Google co-founder Sergey Brin said, “There is no question that the number (of workers) is too high”.
The classification affords Google several advantages such as:
1) Hire full time employees without full time benefits. The classification enables Google to pay them above minimum wage, provide no health benefits, no insurance coverage, no stock options, and no offer of permanent employment.
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