Even Google is trimming staff

In this phase, it's always the contractors who get cut first, even at Google.

Internet search giant Google said it is "significantly" reducing the number of contract workers it uses, but has no plans at this time to lay off employees, the Wall Street Journal said.

"We have been thinking for some time, before the acute phase of the economic crisis, about significantly reducing the number of contract workers," spokeswoman Jane Penner told the paper.