The economic down turn has hurt many companies, and even the search engine leader is not immune. Google Inc. reported its first-ever drop in quarterly profit Thursday, many analysts thought Google Inc. would be affected more by current economic conditions. Now keep in mind that no one said loss, just not as large as a profit.
Google made $382 million, or $1.21 per share, in the three months ending in December. That was a 68% drop from the 2007 fourth quarter. Google’s profit had climbed by at least 17 percent in its previous 17 quarters as a public company.
Users are still going to Google when they want to shop, the fourth-quarter (Christmas time) volume of clicks on Google’s ads rose by 18 percent from the same time in 2007. Those clicks trigger payments to Google from their advertisers. Many consumers stayed away from the malls and shopped online. So the economic conditions actually helped Google in this case.
Even though Google is still making money they want to start some cost saving actions. The company added just 99 workers in the fourth quarter, down from an average quarterly increase of 1,300 employees in the past two years and recently laid off 100 recruiters. You don’t need recruiters if you are not hiring. Google spent just $368 million on capital projects which is almost a 50% drop from the previous year.
Google remains to be one of strongest companies in the U.S. Even in the hard economic times, Google is still making a profit, a smaller profit but still making money. Do not worry Google will still be here.