ADOTAS – Google’s era of open-handedness is screeching to a close. The enviable and legendary free massages, dry cleaning, day care and snacks galore, already cut or reduced in many cases, may all be a distant memory soon due to shrinking revenue. Online ads still account for 97% of Google’s revenue, with products like Google Checkout and Google TV Ads failing to generate the return the Internet titan hoped for, according to a report in The Wall Street Journal.
Google’s chief, Eric Schmidt, told the Journal that the company will curtail projects that “haven’t really caught on” and “aren’t really that exciting.”
Among the company’s cost-cutting measures, per the Journal:
- It has already killed SearchMash and this month will kill virtual world Lively.
- It started running ads on Google Finance and will also begin showing ads to some Google News readers.
- Figure out how the hell to generate new revenue streams (priorities include display, mobile advertising and online business software).
- Significantly cut its 10,000 contractual worker-strong force.
- Reduce perks.
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