Google plans to cut projects with respect to the global recession. The Internet search giant is facing slower revenue growth due to the slowing economy. Google remains optimistic that current economic conditions are just temporary.
By: Jennifer Hong
Published: Dec 4, 2008
Updated: Jul 2, 2009
Google Inc announced on Tuesday that it plans to cut projects with respect to the global recession. The Internet search giant is forced to make similar cutback decisions as most American companies are finding ways to weather the current economic conditions.
Google CEO Eric Schmidt told the Wall Street Journal, "We have to behave as though we don't know" what's going to happen. Schmidt said projects that haven't caught on or aren't really that exciting will be cut. Other projects will be trimmed.
Schmidt didn't say whether Google would consider a workforce reduction. The CEO did say that the company will no longer give an engineer 20 staffers to work on experimental projects.
The search engine giant is coping with bad economic times like most companies. Google is also going through a period where runaway growth is no longer. The company is facing its first cuts since it began over 10 years ago.
Wall Street analysts believe Google can withstand the current economic downturn. Most analysts agree that the company is in a much better position than its competitors.
Google's third-quarter profits did beat Wall Street expectations. Net profits rose 26 percent to 1.35 billion dollars while revenue, at 5.54 billion dollars, was up 31 percent from the same period of 2007.
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