Google closes Melbourne office


I must admit I was a little surprised to see this make the news today.

http://www.misaustralia.com/viewer.aspx?EDP://1238103505036&section=news&xmlSource=/news/feed.xml&title=Google+axes+Aussie+staff

Google is closing its Melbourne office, and it’s being reported 15 people have lost their jobs as a result.

To be honest, it shouldn’t be that much of a surprise as 99% of my dealings with Google have been out of Sydney … but it’s still a surprise regardless.

If Google are making cuts like this, who’s next?

The facts are, Google has 90% market share of the largest component of the digital advertising pie … and cutting 15 staff isn’t a small thing in this market.

If Melbourne doesn’t make sense for Google how can it make sense for anyone as it currently stands?

If they have to do it, who else is going to have to face the decision? The display market is pretty crowded … lots of people competing for the 30% of the pie.

It’s always said you need “people on the ground” … especially in Melbourne … but maybe due to the current economic situation this ‘need’ might become a ‘nice to have’ and thus dispensible.

Many will be asking themselves the question – is the investment in Melbourne generating the return required or could you centralise sales/biz dev in Sydney and fly in/fly out.

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One response to “Google closes Melbourne office

  1. i guess this is part of the 200 cuts thex announced today. It sounded like they were US jobs, but i guess not all…

    I agree though – wiping the whole melb office is telling… and more than a bit scary for other publishers…

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