Google Inc (NASDAQ:GOOG) Cuts Down On Hiring By 25% In First Quarter 15 Compared To 1Q14 To Boost Profits
There comes a time when even a company perceived to be as wealthy as Google Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) takes rising expenses seriously. Google has a huge cash stockpile and reports billions of dollars in profits each quarter and each year. However, the company believes that its future isn’t secure unless it sheds some excess fat. For that reason, the company has slowed down hiring of new staff and spending in some departments and activities are being cut.
Need for operational efficiency is driving Google Inc (NASDAQ:GOOGL) to reduce the number of new staff it recruits. The company is hoping to cut costs and boost profits by taking in fewer workers and driving austerity in various departments.
Hiring slowed down
It is emerging that in 1the first quarter of 2015, Google hired just 1,819 workers, compared to about 2,435 workers it hired in each of the quarters in 2014. As such, the company cut down its new hires by 25% between the first quarter of 2015 compared to the first quarter of 2014.
Google’s departments that have been hard-hit in the latest wave of austerity measures include Google+. Reports are emerging that hiring at Google+ has been frozen. Instead, the company is giving more attention to Nest, its smart-home division, where it is willing to allocate more resources for its success.
Google Inc (NASDAQ:GOOGL) is requiring departments to prove that additional hiring is necessary for the progress or success of a project. In the past, different departments at Google enjoyed freedom to hire at will.
It’s all about cost-saving
Google is not only slowing down the rate of its workforce growth, but the company has also heightened scrutiny of expenses. The areas where expenses are being scrutinized are special events and travels.
There are reports that Google’s CFO, Ruth Porat, who joined the company recently in May, is driving the austerity measures. It has also been pointed out that Google executives are interested in trimming some fat from the company to make every dollar count.
At the moment, Google Inc (NASDAQ:GOOGL) is taking on many ambitious projects that require large investments but haven’t started generating revenue, thus the need for austerity.
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