Google up to 300 workers in Ann Arbor after five years
Internet giant Google now has more than 300 people working at its Ann Arbor sales office, the company's local leader said this morning.
Google's Mike Miller, speaking this morning at an event marking the company's fifth anniversary in Ann Arbor, said Google's local focus is still trained on North American sales.
"Our hope would be that we continue to grow, that our business overall continues to grow, that the office will continue along that path," Miller said at leadership consultant Rob Pasick's breakfast event.
More than 300 people work at Google's office in downtown Ann Arbor.
Steve Pepple | AnnArbor.com
Asked whether Google would consider expanding the functions of its Ann Arbor office beyond sales, he added: "We constantly look at other parts of Google that should be located here."
Google officially opened its Ann Arbor operation in September 2006 in a small second-floor office above Vinology on Main Street. Soon after that, the company moved to McKinley Inc.'s McKinley Towne Centre downtown office building at the corner of Liberty and Division.
Co-founded by University of Michigan graduate Larry Page — whose relationship with U-M President Mary Sue Coleman played a key role in the company's decision to locate here — Google was attracted to Ann Arbor's entrepreneurial sector and young talent.
Google originally promised to add 1,000 jobs over the first five years of its tenure in Ann Arbor, but the company's personnel growth slowed in the midst of the global financial crisis. To offset the personnel costs of its expansion, Google received approval from the Michigan Economic Development Corp.’s Michigan Economic Growth Authority (MEGA) board in 2006 for a tax credit of up to $38.25 million over 20 years.
Although the company hasn't met its hiring target, it won't be forced to pay back taxes because MEGA tax credits are distributed on an incremental basis per hired employee.
The MEGA tax credit program was discontinued in 2011 as part of Gov. Rick Snyder's business tax reform legislation, but previous tax credit recipients were allowed to keep their credits.
About a year ago, Google told AnnArbor.com that it had about 250 employees at its office with plans to hire more workers in 2011 as part of the company's national hiring push.
Miller said the company has "over 300 people that work at our location." It's unclear how many of those are Google employees and how many are contractual workers. AnnArbor.com reported in September that Google was contracting with Bermuda-based outsourcer GenPact Ltd. to help staff its AdWords sales office.
The GenPact contractors, who were working side-by-side with Google’s employees at the Ann Arbor office, were described as conducting sales support activities for the AdWords operation. Most of Google’s local employees manage advertising relationships with major corporate customers.
Although Google doesn't have 1,000 employees, local economic development officials have still described the company's decision to locate in downtown Ann Arbor as a seminal moment for the image of the local tech community.
It's also provided downtown jobs for young professionals. Most of Google's Ann Arbor employees are young adults.
Most of the company's local focus is on sales of AdWords — the keyword-based text ads that are displayed alongside Google searches — and AdSense, which information publishers use to display ads alongside their content.
But the company's Ann Arbor office is now providing services to YouTube and the new Google+ social network, Miller said.
Colby Chilcote, a local Google employee, said one of the reasons she likes working for the company is its policy of allowing employees to dedicate 20 percent of their time to a project of their choosing.
"I am both encouraged and also supported to explore other interests I have," Chilcote said.
Miller emphasized that in Google's five years in Ann Arbor, it's made an impact on the community, too. The company donated more than $2 million in advertising to Michigan nonprofits in 2010, including Ann Arbor groups like writing coach nonprofit 826Michigan. In 2011, Google launched a service — MichiganGetOnline.com — to help small business owners launch a website for free.
About 58 percent of Michigan's small businesses don't have a website, Miller said.
"That means that you’re effectively invisible to people in this room everyday doing searches online," Miller said. "You’re not showing up when they’re doing their research."
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
ArgoC
Thu, Feb 2, 2012 : 4:42 p.m.
What does this mean in real words? "it won't be forced to pay back taxes because MEGA tax credits are distributed on an incremental basis per hired employee"
bruno_uno
Thu, Feb 2, 2012 : 4:51 a.m.
Google originally promised to add 1,000 jobs over the first five years for a tax credit of up to $38.25 million over 20 years. Maybe they should payback for lying by closing the inside google breakfast/lunch/and dinner service so Ann Arbor reaps some of the lost taxes in spin off business opportunities for the community supporting their corporate tax break on the backs of hard working residents of the city.
johnnya2
Thu, Feb 2, 2012 : 6:05 a.m.
Umm, they do. People need to prepare the food, that would be an employee. Google PURCHASES the food as well. So no, they do not owe anything back. I guess you think if a company puts in a Coke machine they are breaking some help they could give to the local party store?
Kai Petainen
Thu, Feb 2, 2012 : 3:30 a.m.
I did not know that they had 300. That's pretty cool. Sounds like you could make a movie with that many people
Betty
Wed, Feb 1, 2012 : 11:30 p.m.
@A2COMMENTS I thought my head was going to explode with the 'fuzzy math' of so many comments. THANK YOU for understanding correctly the financial part of the story. ...and thank you Google. We love having you as part of our community. Now if U of M would proactively created a department/course of study/partnership to support Google we would all benefit. Is that happening? Can you hear me up in the tower? There's and opportunity for our community!
Betty
Thu, Feb 2, 2012 : 1:54 p.m.
I feel bad for you when the world in your head is so terrible and negative. If you promise to open a sandwich shop I will get 300 additional people with high paying jobs nearby so you have someone to sell sandwiches to. However if you open a high tech/ higher wage business I will gladly give some meager tax incentives so my other sandwich shops and retailers can thrive too. Since I recover the taxes easily by the taxes on the businesses and employees EVERYONE wins. Again I am sorry your world is victimizing to you and filled with hate. I wish you peace.
Townie
Wed, Feb 1, 2012 : 11:37 p.m.
So if I promise to open up a sandwich shop I can get $1,925 for each employee I hire (and free parking, etc.)? Nope; only applies to big corporations -- you know, the ones with lots of $s for lobbyists. Money talks and the rest of us walk. Is that unfuzzy enough to understand? Now though with Citizens United (quite an oxymoron if there ever was one) they don't have to lobby - they just buy, er, elect the legislator of their choice and he does what they want. Neat; the 'best money can buy'.
A2comments
Wed, Feb 1, 2012 : 9:42 p.m.
"Google originally promised to add 1,000 jobs over the first five years of its tenure in Ann Arbor, but the company's personnel growth slowed in the midst of the global financial crisis. To offset the personnel costs of its expansion, Google received approval from the Michigan Economic Development Corp.'s Michigan Economic Growth Authority (MEGA) board in 2006 for a tax credit of up to $38.25 million over 20 years. Although the company hasn't met its hiring target, it won't be forced to pay back taxes because MEGA tax credits are distributed on an incremental basis per hired employee." So does that mean that the $38.25 million over 20 years was based on hiring 1,000, and the math would be $38.5 million divided by 20 years divided by 1,000 employees = $1,925 per year per employee? That means that if they only had 300 (assuming they were all Google employees), 300 x $1,925 = $577,500 would be their 2011 tax credit? And it means there is nothing to pay back because they got nothing they didn't deserve? Just trying to understand.
Lolly
Wed, Feb 1, 2012 : 10:46 p.m.
Yes.
Sandman
Wed, Feb 1, 2012 : 5:17 p.m.
Kudos to Larry Page and his entreprenuerial spirit; co-founding Google was an amazing undertaking. With 32,467 total employees and a $189 billion market cap, it seems like Google would shift more of the operations to Ann Arbor. This Ann Arbor atmosphere helped nuture the concept and we're full of young college minds. Another point; young college students and/or new graduates do not expect a high salary and benefits, that makes it easy to get them for cheap. This makes Ann Arbor the perfect spot for genius ideas at a low cost. What's with the "Bermuda based" outsourcing GenPact LTD? Are you kidding me... How could we allow Google to receive tax incentives and outsource employment to a Bermuda based company. Something is seriously wrong with this situation.
B2Pilot
Wed, Feb 1, 2012 : 6:18 p.m.
Regarding your tax incentive comment- that is why Granholm and the democrats in general were voted out last election. a 2 billion dollar swing in the first year of the new gov and legislature. Actually working for the people not the corprations
B2Pilot
Wed, Feb 1, 2012 : 5:05 p.m.
Thanks to President Coleman for persuading Google to set-up some shop here. As for the city council who has yet to lure ANY business to this city- You should send a thank you to her also! City Council Please Bring some work to this city!!
ruminator
Wed, Feb 1, 2012 : 4:30 p.m.
....and of the 300, how many are full time Google employees? I'll bet the majority are temporary through an agency. If the 38 million tax break number is correct, we (the taxpayers) have subsidized each worker at a rate of 1.2 MILLION each.
Marshall Applewhite
Thu, Feb 2, 2012 : 4:58 a.m.
I believe the Google Ann Arbor workers are on two year full time contracts.
G. Orwell
Wed, Feb 1, 2012 : 4:12 p.m.
I am supportive of Google growing in AA and providing much needed high paying jobs. What I do not like is the management's decision to continue and expand their spying operation of its users. Google just struck up a partnership with the NSA of all government agencies. Now Google+ is supercharge the spying operation by linking all Google platforms and its social media. Everything you do will be tracked, traced, and recorded. South Korea and UK are/were considering prosecuting Google for spying. Remember Google, "Do NO Evil." Maybe you should rephrase that to, "Do No Evil Until Our Customers Abadon Us."
Roy Munson
Wed, Feb 1, 2012 : 3:57 p.m.
"And in five years, you'll be blown away!!!"
Barzoom
Wed, Feb 1, 2012 : 3:19 p.m.
According to their web site, as of 12/31/2011 Google had 32467 employees. Three hundred in Ann Arbor doesn't seem like a very big number for 38 million in tax breaks. Also, how many of their employees are located outside the USA?
gofigure
Wed, Feb 1, 2012 : 2:55 p.m.
300 in 5 years. Cool, at that rate in 12 years, they'll have met their commitment.
smokeblwr
Wed, Feb 1, 2012 : 2:52 p.m.
This "Google" thing is just a fad, like the pet rock or ice beer.
towny
Wed, Feb 1, 2012 : 11:27 p.m.
really bobby ! you are a genius
Robert Granville
Wed, Feb 1, 2012 : 4:45 p.m.
Gotta be sarcasm...
Swordsman
Wed, Feb 1, 2012 : 2:47 p.m.
This is why Snyder got rid of all these special incentive programs. The company gets a guaranteed tax break - but the community only gets promises of jobs. Companies had even reason to exaggerate in order to get a credit. Perfect example here.
Townie
Wed, Feb 1, 2012 : 10:37 p.m.
Yeah, Snyder just threw $1.8 billion at businesses in tax cuts and 'hoped' they would respond with jobs. And, of course, there was no stipulations or reporting so we'll never really know. But Synder, of course, will claim any economic improvement is because of the billions tossed out there. With no ability to track the billions there's no need to fear that the myth will be dispelled. Neat trick and he hopes no one will really think about it. And our media (esp. AA.com) will avoid bringing up this.
Swordsman
Wed, Feb 1, 2012 : 7:02 p.m.
I realize they don't receive all the break at once. But the decision to give them the break was made with the understanding this was supporting a initiative that would create +1000 jobs in 5 years. If Google originally approached the state with the pitch "we'll just be hiring about 60 low-wage sale people people annually over the next couple years, that's about it," I bet that would've probably changed the calculus about if they deserved a break and, if so, how much. The point is that purpose of these breaks was to bring significant new business to the state, not reward small incremental hires. Here, we've ended up giving credits to a company that has ended up making (at best) moderate-sized hires over time. If that's the case, why not give one to every business in Ann Arbor that hires a couple people? We don't and that's why I'm ok that the special credits went away.
Ron Granger
Wed, Feb 1, 2012 : 4:13 p.m.
"Perfect example here." That word does not mean what you think it does.
Sunkmybttlshp
Wed, Feb 1, 2012 : 3:53 p.m.
"Although the company hasn't met its hiring target, it won't be forced to pay back taxes because MEGA tax credits are distributed on an incremental basis per hired employee." Just in case you skimmed over that part.
actionjackson
Wed, Feb 1, 2012 : 2:21 p.m.
A thousand employees in five years sounded too good to be real then and after the downturn I would say that we are fortunate that we have 300 now. As the article states, " the company's decision to locate in downtown Ann Arbor as a seminal moment for the image of the local tech community." These employees of course add more business to the coffee shops, lunch counters, and some most likely have moved within the city limits and are providing taxes and long term benefits to Ann Arbor. I hope to see this company continue to grow and flourish in due time.
xmo
Wed, Feb 1, 2012 : 2:18 p.m.
It sounds like Google discriminates against older workers? "Most of Google's Ann Arbor employees are young adults." In Google's Ann Arbor office is anybody over 50 years old? Sounds like a story!
towny
Wed, Feb 1, 2012 : 11:23 p.m.
Thanks bobby, your brilliant.
Think!
Wed, Feb 1, 2012 : 5:07 p.m.
Really Robert? Yeah, Steve Jobs was anything but tech savvy. You are failing to embrace the fact that almost every person on the cutting edge of the computer industry is older than or approaching 50.
Robert Granville
Wed, Feb 1, 2012 : 4:44 p.m.
The answer is simple. Young adults are tech savvy.... older folks not so much.
djacks24
Wed, Feb 1, 2012 : 3:04 p.m.
"I suspect most older adults are happy to be doing something other than ad sales." In this economy, I'm sure there would be older adults lined up for a job at google. I'm not yet 50, but I'd work there.
Swordsman
Wed, Feb 1, 2012 : 2:48 p.m.
I suspect most older adults are happy to be doing something other than ad sales.
actionjackson
Wed, Feb 1, 2012 : 2:23 p.m.
Apply and find out.