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Google to cut 200 jobs in sales

SAN FRANCISCO (Bloomberg) - Google Inc., owner of the most used Internet search engine, will cut about 200 jobs in its sales and marketing operations as the recession weighs on revenue growth.

The cuts will take place globally, and employees will have a chance to find other positions within the company, Google said in a blog posting yesterday. Google said it needs to reorganise after years of expansion that complicated decision-making.

"In some areas we've created overlapping organizations," Google said. "We over-invested in some areas in preparation for the growth trends we were experiencing at the time."

Google is curbing costs as companies reduce spending on online advertising, its main revenue source. In January, Google said it would cut about 100 recruiting jobs, and in February the company said it would shut down its radio business, eliminating as many as 40 jobs.

The latest round of cuts will affect about one percent of the workforce. Google had more than 20,000 employees at the end of last year. The company already slowed hiring in the fourth quarter, adding about 100 people, compared with about 500 in the third quarter.

"Google has grown very quickly in a very short period of time," the company said. "When companies grow that quickly it's almost impossible to get everything right - and we certainly didn't."

Google, based in Mountain View, California, rose $9.22, or 2.7 percent, to $353.29 at 4 p.m. New York time on the Nasdaq Stock Market. The stock has risen 15 percent this year.