We think you're near Los Angeles

Currently in Los Angeles

Location: Los Angeles Current temperature: 48°F: Current condition: Clear See Extended Forecast

Google is laying off contractors and administrators


 

 

In the Puget Sound area, it often seems as though the economy is Boeing and Microsoft all the time.  However, there are several other high-tech firms that have located at least part of their workforce here.  A case in point is Google, which located some of their development staff here – with great fanfare – a while back.  The economy is giving Google fits.

Apparently, Google is laying-off a large number of sub-contracted employees and full-time employees that manage those contractors. The layoffs are taking place in Seattle and Kirkland. 

A source said the layoffs are coordinated in a fashion to avoid showing up on the radar of governmental, business, and media reporting agencies.  In other words, the layoffs are below the threshold of the various state and federal rules to avoid being identified and therefore having to pay large severances.

All sources said that they had signed “tight” secrecy employment agreements with Google and were not in a position to speak to co-workers or third parties about their employment, employment terms, pay, terminations, layoffs and any other work that relates to Google.  They also cannot organize with other employees to mount class action lawsuits or side with labor unions against Google.

Many of the employees said that they had given up full-time jobs at other Fortune 500 companies to go work for Google.  Apparently, they were lured by the “Do-No-Evil” motto.  They said they believed that “Do-No-Evil” was a real policy but quickly learned that it was a marketing trick.

When asked why they left full-time jobs at Fortune 500 companies to go work as contractors at Google, for much lower pay and no benefits, they said that it was Google’s policy for them to join as contractors for a trial period and then be taken on as full-time employees.  None of them ended up as full-time employees.  Also, the trial period varied from person to person – from three months to one year, and that it could be extended at Google’s discretion.

They also said that after the various agencies for the subcontractors took out their management fee, the final payment to sub-contracted employees was less than for those doing the same job directly employed by Google.

Several of the sources said that they would never work for Google again, others said they would negotiate a better package, and others questioned if Google would even be around in five years.

 

Steve Spiegel is Principle Consultant at Information Engineering Associates, LLC.  He specializes in Project Management and Data Architecture.  E-mail him at steve@infoengr.net or visit www.infoengr.net.

 

 

Advertisement

By

Seattle Workplace Examiner

Steve Spiegel graduated from UCLA in 1963 and has worked in a variety of fields since - aerospace, banking, utilities, manufacturing, forest...

Comments

  • bigyaz 2 years ago
    Report Abuse

    Any effort to get a response from Google? Or are you satisfied printing a nasty, one-sided post based on anonymous, bitter sources?

  • Shafted 2 years ago
    Report Abuse

    I doubt Google would even entertain Steve's article with a response other than "That's business as usual".
    I am one of those bitter laid off full-time Kirkland/Fremont employees. I was let go from Google in January after 3.5 years of good service. I was let go on the same day as the Microsoft 1400 for reasons that I feel were very dubious and "under the cover" (the few people that may get canned every week never make the news). I was given no notice, and due to company policy I conveniently [to them] forfeited my 2008 bonus and stock option buyback; a combined >100K that they would no longer have to pay out to me that, when combined with other similar line-item terminations, could be used to make their bottom line look better.
    That's how business works!
    Evil or not, Google is in business to make money and will make whatever business decisions it wants to remain Wall Street's darling.
    Anyone who thinks that they specifically care about *any* of their employees is a naive idealist f

  • Steve 2 years ago
    Report Abuse

    Google doesn't comment about their personnel matters. Got nothing to say, I guess.

  • Zac 2 years ago
    Report Abuse

    I'm not a fan of Google or their employment practices. But, I doubt most of those ex-fortune 500 workers left to become Google contractors "for much lower pay and no benefits." I have a couple friends who worked for Google as contractors. They were made to jump through a number of hoops to get the job and were not offered full time positions as they had hoped. However, the pay was not bad, about $100/hr with no benefits for a developer. They were given several weeks notice before their contracts were terminated and one lasted nearly 2 years as a contractor. I expect those ex-fortune 500 workers got similar packages as my friends did. They were paid a higher hourly rate than they were getting at their old jobs, but received no benefits or job security. In this industry, contractors are the first to be let go.

  • Rose 2 years ago
    Report Abuse

    Shafted should be an Full time employee other than contractor if he has bonus and stck options.

Add a new comment

Join the conversation! Log in here or create a new account if you've never registered before.

Got something to say?

Examiner.com is looking for writers, photographers, and videographers to join the fastest growing group of local insiders. If you are interested in growing your online rep apply to be an Examiner today!

Don't miss...