Google to Lay Off 200 more

Google Inc. the search engine giant has announced a few hours ago that it is cutting down its sales and marketing team by approximately 200 employees. Google has said that they over invested in some areas in preparation for some growth trends they were expecting and hired too many people into overlapping jobs.

Earlier this year, in January, Google cut down 100 recruitment jobs, and said about 40 people would be laid off in February, when it cut short its radio advertising efforts.

“When companies grow that quickly it’s almost impossible to get everything right,” Google Senior Vice President of Global Sales and Business Development Omid Kordestani said on Thursday in an announcement posted on Google’s blog.

The Mountain View, CA-based company has nearly 21,000 employees, but it does not disclose how many employees work in the sales and marketing departments.

Reuters has quoted Sameet Sinha, an analyst with JMP Securities, saying that the cuts were in keeping with the agenda of Chief Financial Officer Patrick Pichette, who took the job last year and has made cost-cutting his first and foremost priority. His first strategy has been to cut the non-core expenses.

It is said that since the departure of U.S. Sales head Tim Armstrong from Google recently to take the top job at Time Warner Inc., the sales team was more vulnerable to job cuts.

A Google spokesperson has said that the company will try to adjust the affected employees in new positions, but it would be impossible to place all of them. The number of open positions was not disclosed.

Google is the web search leader in the United States, with approximately 63 percent of the market share. In 2008, Google posted revenue of $21.8 billion, 97 percent of which came from advertising. Still, the company has seen a decline in sales, from 51 percent in the fourth quarter of 2007 to only 18 percent in the fourth quarter of 2008.

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