It would appear that even the almighty Google isn’t immune to the financial crisis currently plaguing our nation. In a story today, the Wall Street Journal reveals that Google is trying to cut costs and reduce spending, which means getting rid of contractors, curtailing 20 percent time projects, shuttering services without traction (e.g., Lively, Google Page Creator) and reducing perks.
This Google cost-cutting story has been making the rounds over the past several weeks. It comes amid financial reports that are becoming more doubtful of Big G’s ability to maintain growth in this recessionary environment, even if it’s doing a better job than almost everyone else. Bank of America Securities analysts have lowered estimates for Google based on perceptions of reduced commercial searched and global advertising weakness.
Google’s share price has fallen to $275.11 in trading Tuesday on the Nasdaq Stock Market, less than half its record close of $741.79 in November 2007.