Due to the COVID shock... Google cuts marketing budget by half and freezes hiring

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Seulgina Cho] Global IT giant Google has decided to cut its marketing budget in half for the second half of this year and freeze hiring primarily in that sector, CNBC reported on the 23rd (local time).

According to the report, a Google global executive recently informed marketing department employees about the budget cuts and hiring freeze for the second half of the year. The hiring freeze applies to both full-time and contract positions. The executive explained, "Budget cuts and hiring freezes are being implemented across the marketing division and throughout Google."

This is interpreted as a consequence of the spread of the novel coronavirus infection (COVID-19). However, a Google spokesperson stated that while the budget has been cut by about half in some sectors, the readjustment process is still ongoing. The spokesperson also added that the hiring freeze is not being implemented company-wide. Earlier, Sundar Pichai, Google's CEO, had announced that some investments, excluding hiring, would be withdrawn.

CNBC reported that these measures came as Google faces economic headwinds due to the COVID-19 pandemic. Google is scheduled to announce its earnings next week.

Originally, Google had expected marketing expenditures to increase this year compared to the previous year before the COVID-19 outbreak. Last year, Google's marketing and sales expenses were estimated at $18.46 billion. This includes advertising for products and services as well as compensation for sales and marketing employees. It has also been confirmed that Google increased its workforce by at least 15% last year.

This content was produced with the assistance of AI translation services.