Google Profits in 2009?
Let’s face it, it’s no new news that almost every company in the stream of commerce is being affected by the recession. If you haven’t already proactively evolved, you are either being forced to evolve in an abrupt manner or you’re headed for extinction. It seems that no one, not even the search Juggernaut boasting behemoth profits in 2008 is immune in 2009.
Recently Google announced that they cut back staff. At just 100 of their over 20,000 employees, it’s just a drop in the bucket, but what could be concerning is that they were all from in a sector (recruiters) that is responsible for facilitating new growth in the company. An undisclosed number of their 10,000+ contractors will not have their contracts renewed. There are rumors that engineering staff could be next. Then, just today Google announced they are dropping their print ad service. Another recent announcement shows that Google is reaching out for new clientele by offering a generous Free $250 in AdWords for new accounts if you sign-up before Jan 31. It may prove that frugal Google is making the right decisions to evolve, cut the fat and promote new business wherever possible.
I wonder if Google can sustain multi-billion dollar profits this, or if they too will succumb to today’s economic health. And by succumb I mean maybe just shy of a Billion in profit during the first quarter of 2009. We’ll find out in a couple of days how the stock performed during the final quarter of 08.