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Google Cutting 200 Sales People

Search-and-ad king Google said today that it is laying off 200 sales and marketing people because it had over-hired in certain parts of the economy.

That may be the case, but probably the 15-month-and-counting recession had something to do with it, as well as Google's declining stock price, which is down nearly 25 percent over the past year.

Google is cutting as you might expect: In January, the company cut 100 recruiters. (It had at least 100 recruiters!), because if you're not hiring, you're not recruiting.

Now, it's cutting sales and marketing people because in a downturn, advertising, promotion and marketing are first to get dropped as a way to improve earnings.

Speaking of earnings, Google's fourth quarter 2008 net income was $382 million, down from $1.29 billion in the third quarter of 2008.

"When companies grow that quickly it's almost impossible to get everything right and we certainly didn't," Google Senior Vice President of Global Sales and Business Development Omid Kordestani wrote on Google's blog today. "In addition, we over-invested in some areas in preparation for the growth trends we were experiencing at the time."

-- Frank Ahrens
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By Frank Ahrens  |  March 26, 2009; 3:45 PM ET
Categories:  The Ticker  | Tags: Google, recession  
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