Google Cuts Spending, New Projects

Company plans cuts in contract workforce, tightens perks as it refocuses
By Jim O'Neill,  Newser User
Posted Dec 3, 2008 9:26 AM CST
In this May 8, 2008 file photo, a Google worker rides a company bike in front of Google headquarters in Mountain View, Calif.   (AP Photo/Paul Sakuma, file)
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(Newser) – Times are tough even at Google, forcing the company to refocus on its core business, the search advertising that generates 97% of its revenue, reports the Wall Street Journal. CEO Eric Schmidt says the company has begun to trim not only some of its legendary employee perks, but unprofitable products and experimental projects.

An engineer isn't going to be getting 20 people to develop his pet project any more, Schmidt says, adding. "When the cycle comes back, we will be able to fund his brilliant vision." Google will be cutting some of the "dark matter"—projects that haven't caught on—and adding advertising to some services that have been ad-free. With revenue growth slowing dramatically, the 10-year-old company's stock has fallen by almost two-thirds in the last year.