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Old 09-20-2008, 12:08 AM
 
Location: East valley
3,073 posts, read 3,488,670 times
Reputation: 4263

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Yes, Google promised so much and now they are leaving. Just could not find the type of employees they needed in Phoenix. Not even on the ASU campus. Not surprising to me at all. Where else does Google REALLY belong???
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Old 09-20-2008, 12:30 AM
 
Location: Phoenix
3,995 posts, read 6,290,320 times
Reputation: 863
Quote:
Originally Posted by PhxBarb View Post
Yes, Google promised so much and now they are leaving. Just could not find the type of employees they needed in Phoenix. Not even on the ASU campus. Not surprising to me at all. Where else does Google REALLY belong???
They are leaving because they thought they would save money in Phoenix over California. The problem is, the engineers they hired pull in just as much as the California employees:

"Google, the Silicon Valley-based search engine company, said Friday that it would close its Tempe office, affecting about 50 jobs....The employees affected, engineers working in information systems, would be offered jobs in the company's headquarters offices in California or other locations."

Operating an extension office in Phoenix proved too costly; therefore, all 50 positions of Google Phoenix will be transferred back to California if they choose to leave. They found plenty of people, however, rent in Tempe is among the most expensive in Arizona. Especially having Intel, Motorola, Honeywell, etc., as neighbors. Google had to compete with them which means still high salaries to entice workers to their company. Bottom-line, with the stock market in limbo and tumultuous google has lost billions in the market; so have its owners and CEO. The market wasn't acting efficiently and in their favor... too bad for sure but the national economy is in serious trouble, hopefully the market and economy can rally after today's news from Washington and Wall Street. But we shall see.
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Old 09-20-2008, 12:45 AM
 
595 posts, read 1,593,555 times
Reputation: 162
These tech companies are always looking for an excuse to outsource to India. 10 years from now, Google may be a has been.
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Old 09-20-2008, 02:44 AM
 
919 posts, read 2,159,915 times
Reputation: 531
Quote:
Originally Posted by fcorrales80 View Post
They are leaving because they thought they would save money in Phoenix over California. The problem is, the engineers they hired pull in just as much as the California employees:

"Google, the Silicon Valley-based search engine company, said Friday that it would close its Tempe office, affecting about 50 jobs....The employees affected, engineers working in information systems, would be offered jobs in the company's headquarters offices in California or other locations."

Operating an extension office in Phoenix proved too costly; therefore, all 50 positions of Google Phoenix will be transferred back to California if they choose to leave. They found plenty of people, however, rent in Tempe is among the most expensive in Arizona. Especially having Intel, Motorola, Honeywell, etc., as neighbors. Google had to compete with them which means still high salaries to entice workers to their company. Bottom-line, with the stock market in limbo and tumultuous google has lost billions in the market; so have its owners and CEO. The market wasn't acting efficiently and in their favor... too bad for sure but the national economy is in serious trouble, hopefully the market and economy can rally after today's news from Washington and Wall Street. But we shall see.
I've heard the opposite. Google's local gigs weren't that enticing in terms of pay, plus local employees don't get all of the benefits of being at the main HQ... day care, celebrity chefs cooking free meals, etc. But also, more importantly, access to the the decision making process.

I think this is not so much a Tempe or AZ issue, but has more to do with the management style of Google. They've seemingly not be able to adjust to, or are ready for, a decentralized structure. All of the people who sign off on projects are in the HQ, and they require a lot of in-person convincing to explore innovative opportunities. They really do encourage workers to develop their own projects, but to get those moved to application-side requires a lot of wall-breaking with certain execs.

External offices, under this system, would almost be useless except in a support capacity - unless some senior (early leaders) were part of the new location and could use their influence to be a squeaky wheel.

It's a company that grew from a dorm room into a huge company in under a decade, so it's tough to maintain that small company feel while expanding by many thousands of people. On the one hand, the founders and senior managers want to be involved with every decision, but at the same time, they risk becoming huge and corporate when they start delegating decisions. They are at a crossroads and it seems they are not quite ready to decentralize.

I'm guessing they've also learned some lessons from others in their industry. AOL grew way too huge and unmanagable, going from giant to almost nothing these days. Yahoo! also suffered from expanding too fasy. They launched a very large presence in L.A., for example, and hired a lot of talent to get into the news/entertainment world. They've since gotten pummeled by Wall Street and have massively scaled back.

In a way I can appreciate the thinking. Companies led by strong personalities are probably the best when most workers are under their influence. It's a mighty change to decentralize this.
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Old 09-20-2008, 03:06 AM
 
Location: San Jose, CA
6,356 posts, read 10,651,928 times
Reputation: 7630
Quote:
Originally Posted by barryhussein View Post
These tech companies are always looking for an excuse to outsource to India. 10 years from now, Google may be a has been.
Ya think? Name one major American software company that has successfully transitioned it's software development to India.

Last edited by kdog; 09-20-2008 at 03:16 AM..
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Old 09-20-2008, 09:58 AM
 
Location: Arizona
803 posts, read 1,452,842 times
Reputation: 537
This Google story is amusing because Google was usually a part of the litany of reasons as to why Phoenix area housing would have ever-increasing demand for housing. The hard sellers would mention the influx of new residents (always ignoring the large percentage of illegals in those figures and certainly ignoring people who move out), job growth numbers (ignoring what those jobs largely were), and the new high-tech corridor including Google. It actually only had fifty Arizona employees? You have to love spinners. Hate the spin, love the spinners.
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Old 09-20-2008, 10:28 AM
 
Location: Mesa, Az
21,157 posts, read 26,598,263 times
Reputation: 3668
The overpriced California housing market is plummeting like a stone as well.
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Old 09-20-2008, 10:55 AM
 
Location: Phoenix
3,995 posts, read 6,290,320 times
Reputation: 863
Quote:
Originally Posted by azjack View Post
This Google story is amusing because Google was usually a part of the litany of reasons as to why Phoenix area housing would have ever-increasing demand for housing. The hard sellers would mention the influx of new residents (always ignoring the large percentage of illegals in those figures and certainly ignoring people who move out), job growth numbers (ignoring what those jobs largely were), and the new high-tech corridor including Google. It actually only had fifty Arizona employees? You have to love spinners. Hate the spin, love the spinners.
That is true, google did promise up to 600 jobs in AZ. But, the market is just not cooperating. Illegals aren't counted when population estimates are done. There was, and always will be a separate estimated population of illegal immigrants. For instance in the last estimate in 2006, figures released showed roughly 1.5 million Phoenix residents and 4.1 million residents in the Valley. Now there was a separate estimate of over 100,000 illegal immigrants (or something close to 100,000), but I think there were more than that. Everyone and most cities are hurting right now. Imagine the banking industry, lending, and retail headquarters in New York, Chicago, etc., that are seeing either closings, bankruptcy, and/or record low retail spending.
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Old 09-20-2008, 11:01 AM
 
Location: AZ
19,646 posts, read 51,198,428 times
Reputation: 8931
Quote:
Originally Posted by ArizonaBear View Post
The overpriced California housing market is plummeting like a stone as well.
Theyre actually on a upswing, or so I read, thanks to the cheaper costs after the crash.
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Old 09-20-2008, 11:06 AM
 
1,570 posts, read 4,336,138 times
Reputation: 600
I think there is at least an element of AZ involved. Google is growing rapidly in the Seattle area and the so-called Googleplex building is under construction in Kirkland (opening early 2009). There are tons of Microsoft software engineers to poach here, and it makes sense for Google to have a presence.

Quote:
Originally Posted by joninaz View Post
I think this is not so much a Tempe or AZ issue, but has more to do with the management style of Google.
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