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Google.com Big Job Cuts 4-26-2008 |
Google the search engine giant, has announced over 300 of it’s DoubleClick staff are being axed |
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The lay-offs make up about a quarter of DoubleClick's 1,200-strong workforce in
the US. Worldwide, DoubleClick has about 1,500 employees.
Google's chief executive Eric Schmidt has suggested that overseas
operations, employing a further 300 people, will also be affected at a later
date. It is a first for Google and perhaps not one they want to trumpet
too much. In a statement, Google said: "Since our acquisition of DoubleClick
closed on March 11, we have been working to match and align DoubleClick
employees in the US with our organisational plan for the business. "As
with many mergers, this review has resulted in a reduction in head-count at the
acquired company." Privacy concerns Some workers have been
laid off already, while Google says others are being offered transitional roles,
or contract jobs, which are expected to end after the two companies are fully
integrated. In a blog posting in March, Mr Schmidt gave a heads-up that
job cuts would be likely and that those outside the US would be made "in
accordance with local law". At over $3 billion (£1.5bn), Google's
purchase of DoubleClick is its largest to date and completed less than a month
ago, after being held up by regulators for a year. At the time, the deal was
heavily criticised and resisted by non-profit privacy groups which argued that
it would give Google unprecedented access to information about consumers' online
behaviour. Microsoft and AT&T also opposed the transaction, which
was approved by the Federal Trade Commission in December. Conflict of
interest? On top of the news of the lay-offs, Google says it also plans
to sell a DoubleClick unit called Performics Search Marketing. That arm
of the business helps marketers place adverts on search engines, including those
owned by Google and its main rivals in the field, Yahoo and Microsoft.
It has always been felt that this represented a conflict of interest for
Google. In an official Google blog, Tom Phillips, director of DoubleClick
Integration, writes: "It is clear to us that we do not want to be in the search
engine marketing business. "At Google, maintaining objectivity in both search
and advertising is paramount to our mission and core to the trust we ask from
our users." Industry watchers maintain that the decision to sell off
Performics Search Marketing makes good business sense and that Google's primary
focus is to get paid as much as possible for the adverts that appear on its
pages. Rumours abound that Google is already in talks with a third party
to sell the business for an undisclosed sum. Although on his blog Mr Phillips
maintains no buyer is waiting in the wings, he does concede there has been quite
a bit of interest "from a number of current partners". Danny Sullivan,
editor of SeachEngineLand.com, praises the much anticipated sell-off and says it
was not unexpected. Google said the business would continue to run as a separate
entity until the division was sold.
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