February 23, 2024

Google To Restructure Its Ad Sales Team, May Slash Workforce

Google is making a strategic move that may transform digital advertising. The tech giant is poised to restructure its sales unit, primarily in response to the recent boom backed by AI and its growing dependence on AI for advertising.

While the details remain yet to be known, whether or not the process would involve layoffs remains to be seen. 

Google looks forward to enhancing customer interactions in ad purchases on platforms such as YouTube, Search, and others. The upcoming restructure will affect a substantial part of its 30,000-strong ad sales team.

Sean Downey, responsible for supervising ad sales to the large American clients of Google, hinted at this departmental restructuring during a meeting last week.

This decision from the big tech company demonstrates its commitment to leveraging AI technologies for more targeted and efficient placement of its ads.

According to sources, Google is also working on a staff consolidation strategy, which may lead to layoffs. The company may reassign employees within the large unit of customer sales, particularly the ones governing relationships with key advertisers.

Google Cut 12,000 Jobs Last January

Interestingly, Google decided to slash 12,000 jobs worldwide last January, which constituted 6% of its workforce. As the company continues to evolve, it continues to align its operational mechanisms with the dynamic tech industry of digital advertising.

In June 2023, Google decided to streamline its operations, merging its Google Ads Technology with the mapping app Waze which resulted in job cuts.

In order to create a better, more seamless long-term experience for Waze advertisers, we’ve begun transitioning Waze’s existing advertising system to Google Ads technology. As part of this update, we’ve reduced those roles focused on Waze Ads monetization”. In 2013, Google had acquired Waze for $1.3 billion.Google

The strategic reshuffling also involves the integration of Google Maps teams and Waze. Google announced this in December 2023. This consolidation is a part of the Google Geo division, which takes care of its mapping products like Google Earth, Google Maps, and Street View.

This measure was also perceived as a tactical step to optimize its resources and sync its mapping products. A Google spokesperson explained the benefits and better technical collaboration for its teams.

Google’s Focus On Integrating AI Technologies

In recent months, Google has shifted its focus largely to AI technologies, coming up with Bard and Gemini. Last May, Google introduced AI-backed advertisements featuring conversational experiences backed by natural language within Google Ads.

These advertisements were designed to create Google Ads and simplify the overall process. During this announcement, Google said that the innovative AI was capable of scanning websites to generate effective and relevant keywords, descriptions, headlines, and images.

As Google continues to set benchmarks, emerging at the forefront of digital advertising, its internal restructuring of the ad sales unit marks its adaptation to AI technologies.

This measure is expected to optimize its ad placements and refine customer interactions. This decision also shows the company’s proactive stance to incorporate technological advancements amidst raging competition in online advertising.

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