Google Revoked over 2,000 Contract Workers Jobs Amid COVID-19 Crunch

According to The New York Times, Google revoked offers to over 2,000 contract workers and temporary workers in an effort to reduce new spending as the pandemic continues to sink ad revenue. Ruth Porat, Google’s Chief Financial Officer, said last month that the company would slow the hiring pace this year “since we are facing an uncertain global depth and duration crisis.” 

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According to the Times, the 2,000 contract positions would have been located around the globe, representing a small fraction of the workforce at Google. In addition to 123,000 employees , the company has reportedly more than 130,000 contractors.

Still, it speaks to last month ‘s significant hiring slowdown that Porat telegraphed. The pandemic has caused a slowdown in the advertising market, where Google makes much of its money. Revenue from advertising for Google’s first quarter was still up year-over-year but growth was slowing. 

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These revoked offers pose greater problems for those people who are out of work now. The Times reports that some people left positions full-time to accept contract jobs with Google. They may not be eligible for unemployment benefits, because they left their positions voluntarily.

“As we’ve publicly indicated, we’re slowing our pace of hiring and investment, and as a result are not bringing on as many new people — full time and temporary — as we’d planned at the beginning of the year,” a Google spokesperson told the Times.