Friday, December 26, 2008

No bonus for Google staff this year

Google Inc, owner of the world’s most-used search engine, is giving employees mobile phones instead of cash gifts this year as it reins in costs during the recession, according to a person familiar with the matter.

In the past Google has been known for giving its employees very good Christmas bonuses, but alas, not this year as the economic downturn has also hit Google. This year's Christmas present from Google is a Dream phone, or a G1, as most of us know it as.

About 85 per cent of workers will get a handset powered by Google’s Android operating system as a holiday gift, said the person, who asked not to be identified. Google handed out $1,000 cash gifts to most employees last year

About 85 percent of Google's staff around the world will get a Dream phone sent out to them and it will be network unlocked and it's a special limited edition of the handset with the Google Android on the back. They will also work over WiFi without a SIM card, which might be good news to some. Google employees are not allowed to sell it on, although we have a feeling a few of these will still pop up on eBay or possibly given away as Christmas presents to friends and family.

Chief executive officer Eric Schmidt said last month that Google is seeking to control expenses and add fewer jobs as the global slump curbs online advertising growth. T-Mobile USA Inc began marketing the G1 Android phone in October, offering many of the same features as Apple Inc’s iPhone, including Web browsing.

The holiday gift is separate from the performance bonus handed out by the company, the person said.

The memo lists 17 countries where the phone won’t work, including Brazil, Russia, India and China. Employees in those countries will receive about $400, the cash value of the phone, Google said in the memo.

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