Google chief reassures investors

Google chief executive Eric Schmidt will tell Bloomberg TV in an interview to be broadcast later today, that the company is also focusing on costs. "We have slowed our hiring, but we’re still hiring," Schmidt said. "We’re still doing the same kinds of exciting and crazy things that Google always does."

The growth of online display ad spend has shown signs of slowing in recent months. However, search ad spend is thought to be relatively stable worldwide and Schmidt is reported to have said: "Google is in a good position. We’ve always said we take a long-term view."

Separately, according to US reports, Google is cutting back on its use of contract workers as a cost-cutting move. Company spokesman Jane Penner said that Google employs around 10,000 such workers and that it plans to reduce this.

"This is something we've been thinking about for a while –six or seven months. It predates the most acute phase of the [present economic] crisis," she reportedly said.