It has long been obvious Silicon Valley is not immune to the economic downturn. Tech sector layoffs aren't rare, as evinced by recent announcements from Tech Ticker's parent, Motorola and Oracle, as well as rumors of pending cuts at Microsoft.
But news Google is laying off 100 people in its recruiting department is an eye-opener. This is new and more significant than prior announcements about the cutting of employee perks and laying off of contractors. Google's cutbacks suggest:
- How quickly Google has scaled back its own growth expectations.
- Search is not impervious to economic activity, as many believed six months ago.
- 2009 consensus estimates for Google remain too high, meaning the stock remains vulnerable even after it has come down, as Henry Blodget writes.