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October 18, 2007 3:58 PM PDT

What do 16,000 people 'do' at Google?

by Elinor Mills
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I'm beginning to think that besides search advertising, hiring is the thing Google does best.

On Thursday, the company reported gains of 50 percent or so in quarterly profit and revenue from a year ago, beating analyst expectations. It wasn't a stellar quarter, but it was pretty darn good.

The notable thing was the hiring. The company added 2,130 workers to its roster, bringing the head count to 15,916. What do nearly 16,000 people do at a company that doesn't make widgets (at least in the hardware manufacturing sense of the word)?

That's an average of about 35 people showing up for their first day of work each business day during the past three months. Granted, that is in offices around the world, but still, that's impressive. By comparison, Yahoo has 13,600 employees, after hiring 1,200 during the past quarter. (Actually, when you think about it, that's even more crazy given the need for Yahoo to retrench right now.)

Those numbers may seem surprising given the fact that Google attributed last quarter's 3-cent earnings miss to overspending on hiring, and promised to curb that impulse. However, during the conference call with analysts Thursday afternoon, Chief Executive Eric Schmidt said many of the people hired during the quarter had been given offers before the previous quarter had closed.

The fast pace of hiring at the search giant is the one concern Jordan Rohan, an analyst at RBC Capital Markets, mentioned in an interview with CNET News.com after the Google earnings call.

"Half the company has been hired in the last 12 months. That's chaotic," he says. "The new employees find it difficult to figure out how to get things done. It's not a normal company."

I can only guess that the new hires are working on the much-anticipated "Google phone," which is probably going to be a Google operating system for mobile devices, and on the new copyright content filtering technology deployed at YouTube this week. They're also probably tasked with taking over the advertising world with the company's lucrative online automated ad platform.

"They have possibly the best core business in the history of the Internet," Rohan says. "That is supporting them as they attempt to find an Act II. I don't know if it will be media, display, mobile or what."

Elinor Mills covers Internet security and privacy. She joined CNET News in 2005 after working as a foreign correspondent for Reuters in Portugal and writing for The Industry Standard, the IDG News Service, and the Associated Press. E-mail Elinor.
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Hiring? Hiring young.
by Galaxy5 October 18, 2007 4:53 PM PDT
Google is a bit overhyped, but what bothers me about the
company is the purity test attitude towards hiring - only people
from the "best" schools need apply, (Google decides which ones
are best) and there have been lots of credible charges of ageism
- including Google's "recent grad only" job posts. I can
understand the reluctance to bring bad habits into your
company, but excluding people withproject management and
development experience doesn't seem like a valid hiring model.

Apple has a similar number of employees. They manage to
create a great number of complex products. Until the 16k
Googlers actually build a product portfolio that makes sense and
start capitolizing on it, I'll remain less than impressed.
Reply to this comment
Ivy Leaguers Rule The Country
by Stating October 18, 2007 10:23 PM PDT
So Google doesn't want to hire from Podunk U? Well look at any powerful company today, headed by Ivy Leaguers. Last 20 years of Presidents. Ivy Leaguers. Get over it. It's life. Maybe you'll get lucky and Google will hire you to wash the dishes in their world class kitchen.
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Don't believe everything you read
by FooKitty October 22, 2007 9:29 AM PDT
I went to a state school and am >40 and got hired at Google. Educational background matters but if you've done interesting things that matters more.
Infrastructure
by Jesse Chan October 18, 2007 7:00 PM PDT
What this article fails to take into account is Google's infrastructure. There is Google File System, Big Table, etc. This is the underlying technologies that make Google work. That includes: AdSense/AdWords, GMail, etc. Here's an article that might talk about what 16,000 Google employees keep busy with: http://fishtrain.com/2007/08/30/googles-trading-floor/
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How do they make their money???
by urlnts October 18, 2007 9:54 PM PDT
Has anyone ever looked at an ad?
Reply to this comment
The advertising industry ...
by jd29 October 19, 2007 2:37 AM PDT
... is ineffeficient as hell and still worth hunreds of billions of dollars. Google's ad system is genius by comparison and more ad spending is moving online. If ad purchasers weren't seeing measurable results they'd have stopped paying a long time ago.
How Google makes money
by scc4fun October 19, 2007 8:19 AM PDT
I have clicked on text ads where it is for the site I seem to be looking for--much more likely one of the links above the results than to the side.
I did
by simplelifer October 18, 2007 10:33 PM PDT
I clicked on the ads couple of times.
Reply to this comment
they click on ads
by wylbur October 18, 2007 11:17 PM PDT
Maybe the 16,000 googlers are required to browse the web and
click on google ads a few or a dozen times a day.
After Viacom there will be cutbacks..!!
by imacpwr October 18, 2007 11:47 PM PDT
The writing's on the wall. There's no way Google's going to walk
away from Viacom without having to pay out billions. If I was one
of those 16,000 I'd already be looking through the classifieds
before it's too late..!!
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Re:After Viacom there will be cutbacks..!!
by scc4fun October 19, 2007 8:22 AM PDT
I doubt there will be that many cutbacks. They have a good chance of being able to use the Safe Harbor provision of the law. They also have very good lawyers, or so I've heard/read.
Not a stellar quarter
by jd29 October 19, 2007 2:34 AM PDT
By how much does Google have to blow away all the analysts estimates before the performance is stellar?
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16,000 GOOGLE EMPLOYEES NEED 16,000 VACUUM CLEANERS!
by FO-FI_FO_454 October 20, 2007 3:02 AM PDT
This is what I would do, how I would start off each GOOGLE work day, if I was CEO of Google, Mountain View, CA and had 16,000 bright, intelligent, and eager beaver employees. A charade follows:

"Good morning Googlers and Googlettes - welcome to day number one of "WE PSUCK (the P is (p)silent) DEAD WEB PAGES FROM THE INTERNET." Let me explain troops. Here in front of you are 16,000 vacuum cleaners, Hoovers, Eurekas, Panasonics, and other brands that are capable of PSUCKING up trash, garbage, dust and also DEAD AND MEANINGLESS WEB PAGES THAT ARE FLOATING ABOUT ON THE INTERNET. Each of you, will be required to find and to remove, repeat, REMOVE, at least 10 dead web pages daily from the internet. Yes, youi in row number 2, "What is a dead web page?" Well, good question....a dead web page is out there on the internet, it has a link, a url, but doesn't exist anymore - it is NO LONGER FUNCTIONING, but it is there, so, if you find one, and your quota shall be 10 per day, PSUCK IT UP, clean up the internet and make it safer once again so that when a GOOGLE Search is performed we won't include these dead web pages to the query. GOT IT? OKAY TROOPS.......grab your vacuum cleaners and let's CLEAN UP THE INTERNET."

End of the charade.

Thank you for this opportunity to Talk Back, and have a wonderful weekend.
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16,000 googlers
by cesium62 October 24, 2007 10:59 PM PDT
Actually, Nooglers show up at Google on Monday mornings and not throughout the week.

Even though half the company may have been hired in the past year, those are fairly bright people being hired. Software development is a fairly standard process, and Google has better than average mechanisms in place to help people quickly come up to speed in generating new software.

16,000 Googlers are hard at work figuring out how to make the things you want to do faster, easier, and cheaper.
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