Google's free-wheeling research days wind down

Google headquarters in Mountain View, Calif.

(Credit: Stephen Shankland/CNET News)

The Wall Street Journal has artfully assembled a collection of mostly public indicators that Google is trying to rein in its expenses, but there are a few nuggets of note about the near-mythic company coming down to earth.

The known factors include shutting down Lively and SearchMash, paring back the 10,000 contractor employees, dropping Google Page Creator in favor of Google Sites, shutting some regional offices, showing ads on Google Finance, and curtailing lavish perks such as abundant food. The more telling items in the piece, though, are that Google is requiring research projects be financially justified, expanding data centers more slowly, tying hiring to revenue, and seeking to diversify its revenue beyond search ads.

Programmers doubtless appreciate free food, but the more serious issue for a relatively engineer-centric outfit such as Google is the freedom to pursue in-house projects while on the clock--Google's famed 20 percent time. There's no indication that's falling by the wayside, but in practice, revenue-generating projects are getting the resources.

"To better manage projects in development, top executives asked engineering vice presidents to rank the 20 most promising projects within their units; those that made the lists were granted the bulk of the resources, say former Google product managers. Projects not on the lists were far less likely than before to get technical support," according to the report.

So perhaps some programmers will look for greener pastures. But with an ugly recession on, Google no doubt still looks to be a secure place to work for somebody seeking a technophiliac culture.

[pgp_protector]

I still wouldn't mind working for them :D

[rjw_mpwr]

why? besides the name. its stock has been dropping. if you have started working at google since 2006, your stock options are worthless. you really think google can get back to the $400,$500 range. I doubt it.

[BigGuns149]

"...diversify its revenue beyond search ads."

I think this statement ignores the fact that Google not only dominates search ads, but online advertising in general! Ever since buying DoubleClick.

While Google scaling back research projects that don't have short term profitability is news the idea that Google has just started to diversify their revenue beyond search ads is so old news it isn't worth mentioning unless you are going to mention a new business that Google is getting into or only recently got into that they are looking to expand.

[joetesta70]

Reality and the laws of physics set in for Google. It's Google's 1999.

First to go is the free food, subsidized daycare, etc
Second to go is the stupid foozball tables and "play areas" by virtue of no one wanting to be seen using them
Third to go is the "play for 1 day a week to create a Beta competitor to Microsoft Office/IE/etc"

All the dead wood that's NOT directly involved in adding value to Search will realize quickly that their 4.0 academic background is no substitute for shipping products that sell...

I'm going to enjoy this...

[AppleSuxLeo]

Google software will be stuck in Beta-hell forever now. Before I thought maybe just ALMOST forever ;)

[Manhattan2]

Not so fast. Google built or bought a foundation that should stand. There is still room for dreamers. Time will always catch up to us. Have Google email us at [e-mail] . We would like to put their workers to work and still have some time for some foosball. Not sure the fancy jets were the best idea but we can look past that. Mitch Govansky