Google Layoffs May Come Following Ad Firm Aquisition

Google, the Internet company that seemingly can do no wrong nor make any missteps, is preparing to engage in one of the most time-honored and well-practiced activities of the Web era: the layoff.
With its acquisition of Internet ad firm DoubleClick now approved by European regulators, Google is set to commence the full integration of this early Web success into its strategic and administrative system, which will likely include reducing the company's size, at least where positions are redundant or deemed outside the Web giant's new goals for serving up ads online. According to a memo by Google CEO Eric Schmidt posted yesterday on the Google blog, "there will be reductions in headcount." Most of the layoffs will take place in the U.S., according to the memo.
While the culture of Google is one of continual, almost unabated growth, the culture of DoubleClick is storied with the looming threat of layoffs, at least from its expand-and-contract days through the early Internet boom, bubble and burst phenomenon. This is not to say that all of the possible layoffs will come from the DoubleClick side, as Google will have to determine who among its combined workforce is most valuable to the venture.
The integration of DoubleClick's ad serving technology and reach will have a significant impact on Google's repertoire of online advertising tools, which let people submit ad campaigns online without the help of a salesperson.
Google's goal with this acquisition is to better compete with companies like Yahoo! which have much stronger capabilities with banner and multimedia ads. Google's strength has been with highly personalized and targeted text ads, which Web users seem to appreciate because they are unobtrusive and contextual.
From Official Google Blog (via Infectious Greed by Paul Kedrosky)
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Comments
26
Subscribe to comments(Unverified)Mar 13th 2008 6:44AM
Hopefully government agencies will learn from google. A job is not a lifetime entitlement. You don't keep high wage or inefficient on staff . Management duty is to the stockholder.
Those companies that don't soon fail, putting all the employees at risk.
(Unverified)Mar 13th 2008 7:10AM
I'm rather surprised. I thought Google was the left's great corporate inspiration. So Google is doing JUST what OTHER corporations do....get big, then buy other brands, then lay off employees to pay for it. And Google even wants to "MAKE MONEY"...hmmmmm time for the left and their crazy followers to start making commercials outside Google corporate offices and ransack them on weekends right?
(Unverified)Mar 13th 2008 8:01AM
Big business is big business. Really very simple.
(Unverified)Mar 13th 2008 8:03AM
This is why I never liked Google. They aren't a search engine, at least not any more. Matter a fact, I often find things better on ASK and YAHOO better anyway. Google keeps getting away from the fact, trying to deepen their own pockets. They don't recognize that's what cost so many businesses before them their lives such as Hechinger (the store not the Website), as well as a few others I just realized I don’t remember.
(Unverified)Mar 13th 2008 8:26AM
Not surprised, and even though they've expanded to Europe it's here in America they are laying off workers.
Sounds like most major companies, they move or expand overseas can pay employees less money per hour and make bigger profits.
(Unverified)Mar 13th 2008 8:29AM
Is this just not typical? A company does well on gaining American money and then when it grows big it lays off the Americans and sends all the work out of the country. " Most of the Lay offs will take place in the United States according to the memo" I think it is time the U.S. citizens turn their backs on companies who turn their backs on the U.S. No jobs = no money to buy their products. I bet these companies would start giving the U.S. citizens jobs if the citizens stopped giving them the money.
(Unverified)Mar 13th 2008 8:42AM
Where is your loyalty? Cutting jobs in the United States at a time when we need them the most is almost unthinkable. Google is doing just what everyone else has done, gone where the cost is the cheapest without thinking about the value in investing in its own economic growth at home. As a Californian, I am completely humiliated by Google's latest announcement. Shame on you.
(Unverified)Mar 13th 2008 8:42AM
I will no longer use google to search
GO USA!!
(Unverified)Mar 14th 2008 11:26AM
Tim, I think catering to 'stockholders' has brought down more companies than most things. I've personally watched companies who provided a great service or product - or both - die because of fickle stockholders, who have no idea even of the products offered by the company. It's "make the quick buck and sell." Not at all indicative of a company's worth.
(Unverified)Mar 13th 2008 9:23AM
"most layoff will occur in the U.S."
Of course....!
(Unverified)Mar 13th 2008 9:59AM
How can anyone blame them for lay offs? A company is not entitled to make as much money as possible. Until we slap our politicians out of office and taxes come down companies will continue to leave the US
(Unverified)Mar 13th 2008 9:38AM
NEVER take ANYTHING for granted. This proves it. Everthing in life does NOT come with a guarantee, and if it DOES - don't count on that, either.
www.CelluliteQueen.com
(Unverified)Mar 13th 2008 9:51AM
I wonder if my comments will even be displayed??? As it is, I am having trouble getting the check they sent me to post onto a pre-paid Visa. NO WONDER!
(Unverified)Mar 13th 2008 10:12AM
Well, I for one will switch search engine companies as of today.
If we ALL do it, Google will immediately see the impact, and hopefully save American jobs before it is too late. Please join me!!
(Unverified)Mar 13th 2008 10:13AM
I am a Google employee that moved from New York to Boston and then got layed off. Oh well, I am spending mofe time with my kids. It was nice company to work at until recently.
I had started promoting an online shopping mall and it is great supplemental income and I have been saving between 5-55% on my purchases at over 1100 stores online including Bare
Necessities, Sephora, Apple, The Gap, Target (great for soo much),
Macy's. I also wait for sales so I get my cash back and the lowest
price
http://www.dailyoink.com The site is ugly, but well worth it.
(Unverified)Mar 13th 2008 10:44AM
I KNOW ONE THING. I LOVE THE WEB. AND WHEN I HEAR ABOUT COMPAINIES LAYING OFF EMPLOYEES IT MAKES ME UPSET. WE PAY A LOT OF MONEY, TO USE THE WEB AND THEN THEY START DOINGS THINGS LIKE THIS. IT IS NOT FAIR TO THE COMSUMER.
(Unverified)Mar 13th 2008 10:51AM
...on top of this, Murtha and his Democratic cronies just awarded the last 3 Armed Forces contracts to European companies (totaling nearly 100 billion dollars), This will cost nearly 19,000 US jobs...factor in the laost revenue and taxes and it is a bigger loss. Butsomehow big business will be blamed along with the 'far Right'....keep drinking the Kool-Aid leftist idiots and howl at the moon as the walls crumble around you. Until you study something besides Why I Hate America 101 things will continue to spiralout of control. Meanwhile, I'll continue to smile when i see your homeless ass on the street.
(Unverified)Mar 13th 2008 10:49AM
pssst...Time to dump all Google stock and if you have a friend in it. Tell them before you lose all of your investment money.
(Unverified)Mar 14th 2008 1:48PM
WHY NOT LAY OFF ALL AMERICANS. YOU CAN HIRE FOREIGNS FOR NOTHING, THEY LIVE LIKE ANIMALS, ALL IN ONE HOUSE, SHARE FOOD. GET FOOD STAMPS, WELFARE,. WITH ALL OF THAT THEY GET MORE THEN AMERICANS WORKING AT A JOB 12 HOUR SHIFTS 7 DAYS A WEEK. AND THE ENPLOYER DOESN'T HAVE TO PAY FOR IT. AMERICANS DO, OUT OF SOCIAL SECURITY. THEY GET HEALTH CARE, FOOD STAMPS, WELFARE, AND AMERICANS PAY FOR IT. DID I SAY AMERICANS PAY FOR IT.......
(Unverified)Mar 13th 2008 11:10AM
Hmmm..... Layoff all the people that REALLY work and management gets a big FAT raise..... SSDD.