Google Reduces Budget by 50 Percent

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Google reportedly cut its marketing budget by 50 percent in the second half of 2020. This news arises from an internal e-mail sent by one of Google’s top brass. Not only budget cuts, in the same e-mail mentioned that Google also suspended the recruitment of new employees, both full-time and contract workers.

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“We, along with all marketing divisions , were asked to cut the budget in the second half,” said one employee who was not revealed.

Google confirmed the news. Google representatives confirm there are budget cuts in some fields by up to 50 percent. “As we said last week, we will re-evaluate our investment plans for the remainder of 2020 and will focus on certain important marketing activities ,” explained Google’s representative, summarized from CNBC, Monday (4/27/2020).

Previously, Google CEO Sundar Pichai said he would withdraw some investment for the rest of the year in response to the crisis caused by the Covid-19 pandemic. The adjustment will start from the side of hiring employees.

At that time, Pichai only said that he would evaluate non-business marketing activities that were not important and recruitment of employees. He did not explicitly say he would cut the budget or freeze employee recruitment.

However, Google representatives said, the suspension of employee recruitment did not occur widely. He explained, Google would only reduce recruitment, not total suspension. Like most companies, Google’s business is also experiencing difficulties amid the economic crisis due to the pandemic.

“Like the 2008 financial crisis, the entire global economy is suffering, Google and Alphabet – Google’s parent company – are not immune to the effects of the global pandemic,” Pichai wrote in a memo.

Reportedly, Google has eliminated skills training for its workers. In fact, before there was a pandemic, Google projected an increase in marketing and sales spending from last year, when the number was recorded at 18.46 billion US dollars.

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