Google DoubleClick Cuts 300 Jobs

Google DoubleClick cuts 300 jobs, nearly a quarter of the advertising company's workforce, and plans to sell Performics, a marketing unit, later in the year.

Google is reducing DoubleClick's workforce by a quarter, cutting 300 jobs, from the American operations and further cuts overseas at a later date. The number of layoffs is higher than some analysts predicted.

The search engine company has hired aggressively in the last several years. The renowned company added more than 6,100 workers in 2007 and ended the year with 16,805 employees worldwide. Google also promised investors last year that company would slow its pace of hiring.

"It shouldn’t be surprising to see some head count reduction, given the areas of overlap between the two companies," an analyst with Cantor Fitzgerald, Derek Brown, said.

DoubleClick employees are being laid off as early as Wednesday and Thursday. The job cuts mark the first sizable layoffs in Google's recent history. Other employees are being offered transitional roles. The transitional roles are expected to end after the two companies are fully integrated.

"Since our acquisition of DoubleClick closed on March 11, we have been working to match and align DoubleClick employees in the US with our organizational plan for the business. As with many mergers, this review has resulted in a reduction in headcount at the acquired company," Google said in a brief statement.

In addition, the search giant is also planning to sell its DoubleClick unit, Perfomics Search Marketing, which helps advertisers to place ads on established networks, including ads owned by Google, Yahoo and Microsoft MSN.