Google CEO Sundar Pichai
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Google has canceled offers for more than 2,000 people who agreed to work as contractors or temporary workers, The New York Times first reported on Friday.
In a Times Mail email, Google told procurement agencies last week that it “is slowing our hiring and investing pace, and won’t spawn as many new starters as we do.” had planned at the beginning of the year. ” Google said it “would not go ahead to integrate” the workers it had recruited through the agencies.
A Google spokesperson declined to comment on details of the Times report, such as the number of contractors whose offers were canceled, but said in a statement: “As we have said publicly, we are slowing our pace of recruitment and investment, and as the bottom line doesn’t generate as many new people – full-time and temporary – as we anticipated at the start of the year, we continue to hire in a number of areas strategic. “
Last month, CEO Sundar Pichai acknowledged to employees that hiring and investment would slow as the coronavirus pandemic created uncertainty for businesses in all sectors. In the memo, Pichai said Google added 20,000 employees in 2019 and plans to do the same this year. At the time, he had recruited 4,000 new employees and a thousand more were to start soon, according to the memo.
A spokesperson told CNBC at the time that Google “would maintain momentum in a small number of strategic areas and integrate the many people who have been hired but have not yet started.”
Later in April, a global director warned of budget cuts and hiring freeze in his marketing department, according to internal documents seen by CNBC.
Google’s announced decision to cancel offers from contractors and agency workers once again draws attention to a large part of the company’s workforce who do not enjoy the same benefits and protections as its full-time employees. These workers, commonly known within the company as TVC (temporary workers, salespeople and subcontractors), represent at least half of the approximately 300,000 people employed by Google.
But their differential status has been highlighted periodically in Google’s history, such as in April when Google told contractors that they could no longer access vocational training tools for full-time employees, as reported CNBC.
However, Google made some concessions to contract workers during the Covid-19 crisis. Google has decided to extend contracts for temporary workers whose jobs were about to end during the crisis by 60 days, CNBC reported in March.
Read the full report on The New York Times.
-CNBC Jennifer Elias contributed to this report.
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