With the ongoing lockdown, things have turned bad to worse. The tech giants are suffering from the huge losses and so is the case with Google, which has now decided to slash down its marketing budgets in a big way keeping it to half for the second half of the year claims the officials of the company. An email has been circulated to the company employees by its top bosses talking about the slash down of the budget along with freezing the full and part-time employees as well. The message clearly said that Google has frozen the hiring process along with the banning of the new recruitments in the company. The message has appeared from the global director of the company sent to the top employees this Wednesday.
It clearly said that the rest of the marketing team had to do the work with the limited budget allocated for the same. Talking about the same, the company spokesperson has confirmed that some of the areas’ budgets are being slashed down by half but at the same time, it may not be able to sustain since it has kept the process of “recalibrating” intact. Talking further, the spokesperson said that the company has reevaluated the speed of the investment plans along with the remaining time of 2020 and thus would focus over the chosen number of vital marketing efforts. He further said that the company would have a robust marketing budget especially for the digital activities in several business areas. The company shares the drop by 2 percent.
The drastic moves seem to have come a week later when Sundar Pichai the CEO of the company will be seen pulling back over some of its investments for the remainder of the year amidst this virus crisis starting with the hiring process. The company is likely to pull back all the major investments which was supposed to be coming this year. However, the company CEO further claimed that it would recalibrate the non business essential marketing and significantly slash down the hiring process. While he did not mention the drastic budget cuts in the budget or the freezing of the hiring process. Beyond hiring, we need to continue to invest, said the company CEO but with the recalibrating the focus and pace of their investments would come in areas like machines, data centers, non business areas, essential marketing and travel.
This news comes in the wake of economic headwinds caused by the Covid-19 pandemic, which has further put a huge impact over the global economy. The media has also learnt that the company has started pulling back the skills and training resources for several of its workers. This has also come just a few days before the company was scheduled to announce the second quarter earnings next Tuesday. The company spokesperson further said it would be carrying out a widespread hiring freeze phase but did not comment about the reason why this measure is being decided. He added that the company has freezed the pace of hiring along with keeping the numbers too low.