Google Dances Around Cutting Back

Google (GOOG) has been dancing around cutting back on spending and projects with no future revenue opportunity for a long time. But it seems like the are finally changing their tune. With all the economic carnage happening on Wall Street it seems prudent that some things would change at Google. WSJ quoted Google CEO Eric Schmidt, saying “Projects that haven’t really caught on” and “aren’t really that exciting.”  are not going to get prioritized for resources. He went on to explain that Google wants to “prioritize our resources and focus more on our core search, ads and apps business.”

This is coupled with a string of news that Google is cutting back in other ways from reducing the 10K contractors working for Google to curtailing lavish perks like abundant food for employees. I also heard from people inside Google that they are being asked to create budgets for the first time. It looks like the world is coming to a end and Google has to stop partying like its 1999.