Uncategorized @ 04 Jul 2008 10:47 pm by bigfish
I’m intrigued by a July 5 New York Times article titled “On Day Care, Google Makes a Rare Fumble.” Apparently, according to Joe Nocera’s report, there’s a bit of controversy and politicking within Google regarding day care. Google is considering raising the cost of its day care by 75 percent, and Googlers with kids don’t appear to be very happy.
I’m sure that there are multiple sides to this story but a few things stand out. For one, at least based on this writer’s report, Google has a bit of a problem with employee expectations. If I take a job at Google, expecting amazing free food all day, subsidized day care, and who knows what else, what happens when the money isn’t rolling in so quickly and benefits need to be cut? What’s Google to do? Start to cut to reduce the bleeding. That’s just business, especially when you’re a public company.
Granted, Google’s benefits are pretty amazing by any standard, but how long can the party last? And when the drinks and hors doeuvres start to run out, how long will the guests linger?
As Joe Nocera comments, Google’s stock dropped 44 percent from a high of $744 to a low of $412, though it has since recovered a bit back to $537 at Thursday’s close. Still, that’s a bit of a tumble as we continue our slide into a bear market. The bad news is coming from all sides and all sorts of companies, and money is already tight. Any business is going to need to pay close attention to their bottom line, and even more attention to that P&L when they’re public. Stockholders are pretty unforgiving and, when you’re a high flyer like Google, one slip can turn into a really bad fall.
Nocera relates a couple of comments from Sergey Brin that certainly make Brin seem arrogant and elitist. Who knows whether Brin actually made these statements, but here’s what Nocera has to say:
At a T.G.I.F. in June, the Google co-founder Sergey Brin said he had no sympathy for the parents, and that he was tired of “Googlers” who felt entitled to perks like “bottled water and M&Ms,” according to several people in the meeting. (A Google spokesman denies that Mr. Brin made that comment.)
Nocera also drew my attention to a very interesting blog by Sergey Solyanik, who writes of his return to Microsoft from Google. Granted, this is one voice (be sure to read not only his post but also the comments on his post), but it’s certainly food for thought.






