Google has been known for its lavish benefits and liberal hiring. But now, it seems that things are changing a bit. The company is tightening its belt as it matures and revenue growth slows. It was reported by the Wall Street Journal (WSJ) that Google is “curbing hiring and seeking ways to run its sprawling empire more efficiently.”
There was concern among institutional investors who expressed their feelings about hiring and costs at the company. It’s been reported that the incoming CFO, Ruth Porat is leading an expansive internal initiative that looking at costs, revenue and accounting issues. Thursday afternoon will be Porat’s first “public” appearance as CFO on Google’s earnings call on that day.
The WSJ said that hiring has slowed, and internally now must be justified in terms of strategic business objectives including new revenues. In total, Google has over 55,000 employees globally.
In the WSJ article, there are concerns that the corporate model that Google may be seeking to emulate are interesting – Berkshire Hathaway:
Specifically, the WSJ reports that hiring has slowed and internally now must be justified in terms of strategic business objectives including new revenues. Google has a total of just over 55,000 employees globally.
The most interesting part of the WSJ article concerns the corporate model that Google may be seeking to emulate — Berkshire Hathaway:
Mr. Page said he looks to Berkshire Hathaway Inc., the insurance-focused conglomerate run by billionaire Warren Buffett, as a model for how to run a large, complex company, according to people who were at the meeting. Mr. Buffett has a cadre of CEOs running operating companies and doles out capital from the holding company to these businesses based on their performance each year.