Google to Sell Performics, Lay Off 300 at DoubleClick

Google’s DoubleClick growing pains are making themselves clear today, as the company announced it is selling part of  Performics, the search marketing arm of its DoubleClick acquisition, Search Engine Land reports. From the Google Blog:

Recently we completed this process for the DoubleClick Performics businesses, and have decided to split them into two separately-run business units: Affiliate Marketing and Search Marketing.

It’s clear to us that we do not want to be in the search engine marketing business. Maintaining objectivity in both search and advertising is paramount to Google’s mission and core to the trust we ask from our users. For this reason, we plan to sell the Performics search marketing business to a third party. We believe this will allow us to maintain objectivity and the search marketing business to continue to grow and innovate and serve its customers. While we have not yet identified a buyer, we’ve received preliminary interest from a number of our current partners. Search Marketing will continue to run as a separate entity until the division is sold.

And in its first layoffs ever, Google will reportedly bid goodbye to a quarter of its American employees at newly acquired DoubleClick, though the company’s mum about the exact number of axed jobs right now. The NYT reports:

The cuts represent about a quarter of DoubleClick’s American work force of about 1,200. The company has about 1,500 employees worldwide, and the chief executive of Google, Eric E. Schmidt, has suggested that job cuts would also affect DoubleClick’s overseas operations at a later date.

Google declined to confirm the number of layoffs.

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

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