Google CEO Sundar Pichai
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Google revoked offers for more than 2,000 people who had agreed to work as contractors or temporary employees, The New York Times first reported Friday.
In an email from the Times, Google told contractors last week that it has “slowed our pace on hiring and investment and not getting as many new startups as we had planned for the beginning of the year.”
A Google spokesman would not comment on details in the Times report, as would the number of contractors whose bids were canceled, but said in a statement: “As we have stated publicly, we are slowing our pace of employment and investment, and as a result, not so many new people – full time and temporary – that we had planned at the beginning of the year. We continue to employ in a number of strategic areas. “
Last month, CEO Sundar Pichai acknowledged to employees that employment and investment would slow as the coronavirus pandemic created uncertainty for companies in various industries. In the memo, Pichai said Google added 20,000 employees in 2019 and had planned to do the same this year. At that time, it had acquired 4,000 new employees and thousands more were planned to start, according to the memo.
A spokesman told CNBC at the time that Google would “maintain momentum in a small number of strategic areas and on board the many who have been hired but have not started yet.”
Later in April, a global head of budget cuts and freezer hiring warned in its marketing department, according to internal material CNBC has seen.
Google’s announced decision to revoke offers from entrepreneurs and temporary employees once again draws attention to a large portion of the company’s workforce that does not enjoy the same benefits and protection as its full-time employees. Such workers, usually known within the company as TVCs (temporary, suppliers and contractors) make up at least half of Google’s approximately 300,000 people.
But their differential status has been highlighted regularly in Google’s history, as in April when Google told contract employees that they could no longer access the skills training tools reserved for full-time employees, CNBC reported.
Google has still made some concessions to contract employees during the Covid-19 crisis. Google moved to extend contracts for temporary staff whose work was about to end during the 60-day crisis, CNBC reported in March.
Read the full report at The New York Times.
-CNBC’s Jennifer Elias contributed to this report.
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