Google begins massive layoffs

The site has been down for a while, because there was't really any news that was different from what I've been reporting for the last four years.  Advertisers defecting, declining growth, etc, it was all pretty obvious to anyone who read the papers. Google's stock has fallen from 759 to 455 in just three months, which is a decline of 40 percent. Ouch.

There are now thousands of new hires at Google that have stock options that are completely underwater and will never be worth a dime. I'm sure it was just lucky timing that existing insiders have sold 19 billion dollars worth of GOOG shares already.

To rub salt in the wound, lately comScore has been reporting that Google's clickthrough rate has dropped about 10 percent year-over-year, while analysts are continuing to value the company as if their ad clickthrough rate is still going up 40 percent per year. Which it clearly isn't anymore.

And the coup de grace came out today: Google has started their first wave of layoffs.  According to SFGate, they're starting with 300 people from the DoubleClick merger. Additionally, for the first time in the company's history, they've stated they're going to have a freeze on all hiring- apparently 16,000 employees is just too much, especially when the advertising industry announced that sales are down over 50 percent in the last 2 months, due in large part to the collapse of the housing bubble.

In case you aren't a SEO specialist, you might not be aware that mortgage companies accounted for nearly 60 percent of Google's advertising revenue for the last four years.  The next quarter is going to be a disaster for Google.

With all this bullshit going on, I finally have a good stream of pissed-off Google employees feeding me information so you guys can look forward to lots of valleywag-style dirt in the coming days.

Yes, I'm back. I am become death, destroyer of worlds. (with regards to Oppenheimer)

There's nothing like a bunch of angry ex-employees to dish damaging dirt anonymously.

Comments

[joe blow]

FIRST!!!!

Welcome back, man.

[John Fanning]

Hi. I am John Fanning. I was the founding chairman and ceo of napster. In my opinion Googles liability for youtube copyright infringement to Viacom is an astronomical. Googles argument are idential to the arguments we made in favor of napster. I still believe those arguments however sadly the courts, and the real power structures in America have already rejected them long ago. Google actually has greater liability because at napster we never touched other peoples content. Google actually stores it and redistributes it. Please. Its entirely possible Google has accumulated enough power in the American system to fight off this threat, but the media companies are very strong, Viacom is very strong, and I am not convinced Google can out payola, the industry that invented the term. Google is fucked.

[Brad]

John, Shawn ... whatever. I sometimes forget my own name too.

[ldm616]

Did mortgage companies really account for nearly 60 percent of Google's advertising revenue for the last four years??? That seems hard to believe. Would love to see the support for that statement. Fascinating if true...

[patrick]

coup de gras?
The mind boggles at what that might mean

[CJ]

We missed fuckedcompany so much, we started our own. Love seeing a site like this get revived. For more general tech industry bubble news check out http://www.screwdd.com

[dave]

wonderful to see you, i thought that i was the only person who regularly shits on google - and oddly they still have my blog on their corporate blog "what we're reading list" even after i've found every possible way to use fuck, shit, asshole et al in every elgoog related posting...

[YeahRight]

Amazing. I had a feeling you'd come back, if just to gloat about being right for two years. I was with ya all along, of course. Normally I would put a long section here about how you fucked us once again by dissapearing (especially with a post about how you were wrong and buying GOOG stock?!?!), but why bother. There isn't much bashing left to do. It's like doing a u-turn and driving over that dead squirel one more time.

[gazzle]

The Admin is baack! Woo hoo

[M]

@patrick:

I noticed that too. My guess is a sudden onslaught of fattened goose liver.

[robert]

Guys - take the plane picture off. PSA Flight 182 in 1978 - 135 people died - very poor taste..I know you probbaly don't mean harm - but out respect to the victims...

[ExNapster]

Hey John Fanning, is it true you fucked over Shawn so bad he won't talk to you anymore? Nothing like fucking over your family to try to make a quick buck.

--Ex Napster Employee

[Don]

What's so evil about google is that I find out that google map service provides wrong direction for several of my important meetings! I'm a trusting person, never expect google would be a part of evil (I'm pretty sure google is paid to commit such evil acts!)

So, I'm suspecting the usual google search as well...

[Elmo]

Why yes, there is a G*d [pretty sure his name is Administrator though (yep, strange that)].

Welcome back,
Your dreams were your ticket out.

Welcome back,
To that same old place that you laughed about.

Well the names have all changed since you hung around,
But those dreams have remained and they're turned around.

Who'd have thought they'd lead ya (Who'd have thought they'd lead ya)
Here where we need ya (Here where we need ya)

Yeah we tease him a lot cause we've hot him on the spot, welcome back,
Welcome back, welcome back, welcome back.

http://anechoicroom.blogspot.com/2006/06/what-happened-to-fuckedgooglecom.html

[cannedmeat]

speaking of layoffs by a certain internet co., guess who was untimely "let go" yesterday. this guy! since the nature of my job was "at-will", they didn't bother giving me a reason. i suppose it was just luck of the draw.
so far the few other people i know that have the same job haven't been "terminated", which is frustrating. not that i want them to lose their jobs (not at all), but it makes me wonder how they determine who they deem unworthy. do they go by name? birthday? height? location? sex?
it's all b.s. and they can easily hide behind the "at-will" portion of my contract. but then again, when you're desperate for decent pay, you'll pretty much agree to work under those sorts of crumby conditions.
it wasn't too bad while the ride lasted, although it's a heck of a way to pay back a good employee.

[Robert]

I remember when my daughter (she worked for Double-Click at the time) was so excited to have Google acquire D-C. She had worked her tail off for D-C. You would not or could not find a more reliable and dedicated employee. She implimented or assisted on many new projects to further D-C's worth. I explained to her that having Google purchase D-C was not necessarily a good thing. I tried to help her stay positive, by reassurance. Knowing all along how the corporate world works, I was concerned for her and her job. After Googles acquisition of D-C, she was layed off in their first wave of cuts. So much for loyalty to emlpoyees that give their heart and soul to a company. Shame on you Google, I hope your stock continues to drop like the ball on Times Square on New Years Eve. I will be using a different search engine from here on and anything else that Google is involved with. NOT GOOGLE.

Signed, A pissed off Dad

[Marah Marie]

Wow, you're back. I had this funny feeling three days ago that I should check but I didn't. Best Manhattan Project I ever did see.

[cannedmeat]

yes, the corporate world is full of sick human beings.

oh well, time to look for another corporate job where i'll be used up and tossed aside. where my years of quality work will mean nothing. where i will earn my peanuts, grow older, and learn absolutely nothing.