Google is number one among search engines. No argument there. It is a major employer. It plans to become even larger - much larger.
Google has announced plans to add 6,200 workers this year as it gears up to have an even stronger presence and provide investors an even better return. That is where the issue lies, however.
They are poised to increase their work force by roughly a quarter and add nearly the same percentage that it added last year. In 2007, it added over 6,100 workers, and last year added 4,200 (23%) to end the year at roughly 24,400 employees.
Great that employment is up. Great that the internet giant is doing so well. They must be confident of the future. That bodes well for all of us.
Wall Street is a little more skeptical, however. They are concerned that payrolls are growing faster than profits and dividends. Nevertheless, Google stock was up over 1% yesterday.
At the same time, Yahoo announced a reduction in its work force of some 150 people or about 1%.
We can applaud the expansion and calculated growth of a major business as long as it is not overextending itself or growing too rapidly. With a reported $35 billion in the bank at the end of last year, this does not seem to be the case, and investors should get over their initial apprehension.
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Steve Hoffacker - Consultant, Coach, Author, Blogger, Photographer, Motivator, Teacher, & Strategist - for Realtors, Real Estate Sales Professionals, Home Builders, New Home Salespeople, Entrepreneurs, Small Business Owners, and Independent Sales Representatives.
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