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Google Withdraws 2,000 Offers for Temp, Contract Jobs: Report

Google's move, reported by The New York Times, likely resulted from its ad woes during the coronavirus pandemic.

It turns out Alphabet’s  (GOOGL) - Get Alphabet Inc. Class A Report Google doesn’t want new temporary and contract workers after all.

The search engine titan has withdrawn job offers to more than 2,000 people who had agreed to take those positions, according to The New York Times. The Times learned of the move from seeing an email that Google sent to contracting agencies.

Google has seen advertising sag significantly amid the coronavirus pandemic that has  crimped corporate ad spending.

“We’re slowing our pace of hiring and investment, and are not bringing on as many new starters as we had planned at the beginning of the year,” Google wrote in the email.

Google has more than 130,000 contractors and temp workers, outnumbering its staff of 123,000, according to The Times. As you might expect, the pay, benefits and perks aren’t as juicy for the non-full timers.

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Some of those offered the work at Google left good full-time jobs once they received their offers from Google, according to The Times. And none were offered compensation by the company after being dumped.

Morningstar analyst Ali Mogharabi likes Alphabet, but thinks its strength is already reflected in the stock price.

“We are removing Alphabet from our Best Idea list as the stock is now trading slightly above our $1,400 fair value estimate,” he wrote in a commentary Thursday. “Alphabet’s share price has increased 20% since it was added to the list in April.”

The stock recently traded at $1,424.41, up 0.44%. It has risen 6% over the last three months. 

Alphabet is a holding in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells GOOGL? Learn more now.