Google Lays Off 200 in Sales and Marketing

  |  March 26, 2009   |  Comments

Cites inefficiencies and overlapping sales efforts created by rapid growth.

Citing inefficiencies created by the company's rapid growth of the past several years, Google plans to cut approximately 200 positions globally in its sales and marketing organizations.

For companies in hyper-growth such as Google has experienced, "it's almost impossible to get everything right," SVP of Global Sales and Business Development Omid Kordestani wrote in a blog post today.

"In some areas we've created overlapping organizations which not only duplicate effort but also complicate the decision-making process," Kordestani said. "That makes our teams less effective and efficient than they should be. In addition, we over-invested in some areas in preparation for the growth trends we were experiencing at the time."

Today's announcement marks only the second significant headcount reduction in Google's history. The first came in January, when the company let go approximately 100 recruiters.

While Kordestani made no reference to cost savings as a motivator in the cuts, Google has lately taken aggressive steps to trim costs and eliminate underperforming products. Among the many Google projects shuttered in the last two months: its Print Ads and Audio Ads programs, which never took off as hoped with advertisers.

Kordestani said Google initially considered alternatives to dismissing staffers but eventually decided the restructuring is necessary to maintain the effectiveness of the company's sales efforts. He said all people laid off will receive a severance package and outplacement services.

ClickZ Live New York Want to learn more?
Attend ClickZ Live New York March 30 - April 1. With over 15 years' experience delivering industry-leading events, ClickZ Live brings together over 60 expert speakers to offer an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!

ABOUT THE AUTHOR

Zachary Rodgers

Until March 2012, Zach Rodgers was managing editor of ClickZ's award-winning coverage of news and trends in digital marketing. He reported on the rise of web companies, data markets, ad technologies, and government Internet policy, among other subjects. 

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

A Buyer's Guide to Affiliate Management Software

A Buyer's Guide to Affiliate Management Software
Manage your performance marketing with the right solution. Choose a platform that will mutually empower advertisers and media partners!

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

WEBINARS

Jobs