Google is reducing hundreds of jobs as part of a restructuring effort to better assist small and medium businesses. Due to these changes, the team is expected to handle more customer accounts and increase hiring.
The company did not provide detailed information about affected employees but mentioned that most cuts occurred in its large customer sales unit. Last month, The Information reported that the company's ad sales unit, comprising 30,000 members, might face cuts due to implementing machine-learning tools.
Turning to AI Automation and Software
Google's chief business officer, Philipp Schindler, informed employees that it plans to cut hundreds of positions from its advertising sales unit as companies increasingly turn to artificial intelligence software and automation to reduce workloads this year. The memo stated that the tech giant intends to automate more processes to decide how advertisers' funds should be allocated across different products.
According to Schindler, the company plans to use GCS as the core channel for scaling growth, dynamically delivering tailored treatments to each customer. Meanwhile, LCS will focus on transformative growth for Google's largest and most sophisticated clients.
The company undergoes a rigorous process to organize its team for providing optimal service to Ads customers annually, ensuring that customers are assigned to the appropriate specialist teams and sales channels to fulfill their service requirements. While a few hundred positions worldwide are being cut, affected employees can apply for available positions on the team or elsewhere within Google.
While acknowledging the potential difficulties these adjustments may pose within the LCS teams, Schindler expressed confidence that the decision aligns with the best interests of customers, partners, and the overall business.
Hardware and Central Engineering Teams' Reduction
The layoff follows last week's announcement of several job cuts in its hardware and central engineering teams and employees working on Google Assistant, the company's voice-activated software product. The layoffs also affected the teams responsible for producing Google's Nest, Pixel, and Fitbit devices, significantly impacting the company's augmented reality team.
In a statement last week, the company said it is responsibly investing in its biggest priorities and significant opportunities ahead. To best position the company for these opportunities, changes were made to become more efficient, aligning the company's resources to the most important product priorities throughout the second half of 2023.
Twitch, Other Tech Companies Dealing with Layoffs
Last week, Amazon's live streaming platform Twitch revealed plans to reduce its workforce by 35%. Twitch CEO Dan Clancy shared news about the company's efforts to operate sustainably in the past year. However, there's still work to be done, leading the company to cut just over 500 Twitch positions, as a recent blog post shared.
Amazon is reducing positions in its Prime Video and Amazon MGM Studios sections. Additionally, tech firms such as Discord and Duolingo reported layoffs at the beginning of the year.
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