Turns out that even mighty Google isn’t immune to a recession this size. 

Without ever getting much of a chance to gain momentum, Google’s avatar-based social networking environment called Lively will come down December 31st, 2008.  A few months ago, I wrote about Lively and speculated about what it could mean for the future of web navigation (Is Google lively a sign of things to come?).  While avatar-based web navigation may have seemed a little far-fetched, it didn’t seem outside of the realm of possibility.  Perhaps when this economic cloud clears we can once again look into a Virtuosity-style internet future.  I hope so.

Google is also reported to have ceased to continue with some 10,000 contract workers.  Early reports speculate that these primarily include bus drivers and cafeteria workers.  Now, I know food at the Googleplex is good, but could it take 10,000 to prepare and serve it? 

No.  These people were probably part of the layoff, but the majority was likely to have been “talent”.  What this really illustrates is a longstanding issue with American big business.  Companies use contract labor to appear trim in headcount for Wall Street analysts, to avoid paying full-time employee benefits, and to give themselves more flexibility to handle swells.  Yes, using contract labor is unavoidable to an extent.  Profits (and related workload) are tidal— staffing needs change rapidly as the availability of cash changes.  I myself have hired ~100 contract workers over the years for just such reasons.  But, when roughly 30% of your total workforce is temporary, one has to wonder what is going on?