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Or maybe they've laid off the group that was in charge of organizing these competitions? Or will soon?

They did, indeed, lay off the group in charge of organizing these competitions (or at least the Google Code Jam Program Manager).

Probably more a sign that these competitions don't help with hiring in any substantial way.

I believe they do help, but certainly hiring doesn't seem to be a priority for them at the moment.

It's strange that they decided to discontinue the entire competition instead of just cancelling this year's one, though.

nah, it's google shutting down a random thing like always