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November 25, 2008
Google 'Layoffs' Are Actually Cuts to Contractor Workforce
On Sunday, Web Guild spread fear around the internet by 'exposing' Google's quiet layoffs, which were said to be upwards of 10,000 employees. And Google was supposedly getting away with it through secretive loopholes that only corporate lawyers know about. They were hiring workers and not paying them benefits.
Actually, those people are called independent contractors and they knowingly enter into those agreements.
Google is reducing its contractor workforce, but it's something they've had planned for a long time. Of course, the timing of implementation couldn't be worse. Especially since contractors generally don't get unemployment benefits once terminated. Independent contractors are essentially self-employed.
Related Reading:
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Posted by Nathania Johnson on November 25, 2008 10:34 AM
Comments
Andrey November 25, 2008 11:22 AM
Microsoft used to have permatemps who didn't get benefits either and they lost a huge lawsuit over not providing them with benefits. It is the reason why when you work for microsoft now you can only work for them for 11 months.
Google is on the edge of being investigated by the IRS for the same reason. You aren't considered an independent contractor when a company tells you what to do and how to do it. I wonder if the H1-b visa people will be let go also or if they are more like indentured servants?
mark asplund November 25, 2008 7:11 PM
Independent contractor's make up 1/3 of Google workforce? Wow! That is a lot!
Jessica November 26, 2008 10:17 AM
And this one of the reasons why they are becoming eVil.
Diamonds November 26, 2008 12:47 PM
Not sure how much truth is in that..as i have asked few my frnds wrking in google as FTE and as vendor, and most them said nothing is going to happened...google will not remove ny vendor.
Chakdefatte December 1, 2008 4:30 AM
Google has been cutting costs for a long time (meals, employee perks, etc.) and now they're cutting the size of their contractors to save more money.
I think that the reason webguild took that angle is because these independent contractor's make up 1/3 of Google's workforce. Even though many of them will still be working at Google, reducing the number either means that there will be more work to be down with their current work force or that there will be less work that needs to be done overall. Neither are a positive step.