Google is laying off contractors and administrators

July 19, 10:39 AMSeattle Workplace ExaminerSteve Spiegel

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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.