I mean, they did remove "don't be evil" from their company principles, so at least they're not hypocrites.
Still, it sounds like google is walking a line with contractors; some roles/work make sense to have contracted out - but ones where they're working FT along regular hires, or managing a team? That's alarming.
I think more light can be shed on contractors in the major tech shops. Obviously google isn't alone in this practice.