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 Toronto On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!

ClickZ Live San Francisco Want to learn more? Join us at ClickZ Live San Francisco, Aug 10-12!
Educating marketers for over 15 years, ClickZ Live brings together industry thought leaders from the largest brands and agencies to deliver the most advanced, educational digital marketing agenda. Register today and save $500!

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

Gartner Magic Quadrant for Digital Commerce

Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.

Paid Search in the Mobile Era

Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.

WEBINARS

Resources

Jobs

    • GREAT Campaign Project Coordinator
      GREAT Campaign Project Coordinator (British Consulate-General, New York) - New YorkThe GREAT Britain Campaign is seeking an energetic and creative...
    • Paid Search Senior Account Manager
      Paid Search Senior Account Manager (Hanapin Marketing) - BloomingtonHanapin Marketing is hiring a strategic Paid Search Senior Account Manager...
    • Paid Search Account Manager
      Paid Search Account Manager (Hanapin Marketing) - BloomingtonHanapin Marketing is hiring an experienced Paid Search Account Manager to...