Google may claim that AdWords will save the economy, but it appears the search giant is hardly recession-proof itself. Rumors are swirling that up to 10,000 workers could be laid off, and CEO Eric Schmidt may be on his way out as well.

With Google's stock still down, the company is looking to shed operational expenses. Hundreds of Google employees have been laid off since August, and up to 10,000 more could lose their jobs soon, according to a Web Guild report.

Google has avoided publicly reporting layoffs by telling the SEC it has around 20,000 employees instead of the 30,000 it actually employs. The extra 10,000 are classified as temporary workers. According to the report, these workers are paid full-time salaries but lack health benefits and insurance. The search giant also reportedly shuffles employees from one job to another every few months to maintain their "temporary" status.

Amid the looming layoffs, rumors persist that CEO Schmidt will be leaving for a post in President-elect Barack Obama's cabinet, despite Schmidt's assertion that he has no intention of leaving Google.

Schmidt has been in the news lately discussing green energy and his thoughts on the government's economic bailout plans, leading Silicon Alley Insider to speculate that Schmidt may be looking to tackle something besides search.