How do we know? Because Google has told us that it’s cutting down on new hires. And Wall Street likes this, because Wall Street is constantly worried about both Google’s payroll and capex, especially as margins shrink. Here’s graphic representation of that concern, via AmTech’s Rob Sanderson:
The good news, says Sanderson: Since new hires at Google are down 41%, y/y, over the last nine months, margins should improve in the last two quarters of 2008.