Hundreds Laid Off: Google AI Restructures Its Ads Sales Team

  • Editor
  • August 20, 2024
    Updated
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Google, in a substantial operational shift towards artificial intelligence (AI) driven operations, has recently announced the layoff of several hundred employees globally from its advertising sales team. This move signals a major transition in the company’s approach to sales and customer service, marking a new era in the tech giant’s strategy.

On January 16, 2024, Google laid off hundreds from its hardware and voice assistance team, and now it appears the sales team is next in line for layoffs.

Philipp Schindler, Google’s Chief Business Officer, attributed these layoffs to a “substantial channel shift” within the organization’s structure.

Schindler reportedly wrote in the memo, “Going forward, GCS [Google Customer Solutions] will be our core channel for scaling growth by dynamically delivering the right treatment to every customer — while LCS [Large Customer Sales] will focus on transformational growth for our largest, most sophisticated customers.”

The pivot towards AI in Google’s advertising processes is a key factor driving these changes. Google aims to automate a variety of advertising functions, including the creation of ad assets based on ad buyers’ budgets and goals. This is prominently featured in Google’s “Performance Max” product, an AI ad system that autonomously optimizes ads using click-through rates as a feedback mechanism.

Reducing the Google sales workforce is part of a larger trend of layoffs across the tech industry. Over the past year, Google itself laid off more than 12,000 employees, with the recent cuts further adding to this number. Other tech giants like Amazon, Meta, Apple, and Microsoft have also experienced significant layoffs.

As the news of Google’s layoffs spread online, people began expressing their concerns across various social media platforms. There’s a growing sentiment that if Google continues to pursue this strategy, it could potentially impact its long-term growth.

Many turned to Reddit to voice their disappointment about this troubling issue, speculating that following the layoffs in voice assistance, hardware, and sales teams, the marketing department might be the next area affected by job cuts.

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It should be noted that employees at Google are given the chance to apply for other open positions within the company or to accept standard separation packages. However, with the tech industry undergoing significant transformations, many are facing a challenging job market.

Google’s aggressive adoption of AI in its sales and advertising operations marks a significant moment in the industry. As AI continues to reshape business operations, companies face the intricate task of integrating new technologies while responsibly managing their workforce.

This development raises important questions about the balance between technological advancement and employment stability. As AI becomes increasingly central to business operations, companies like Google must navigate the complexities of integrating these technologies while managing the implications for their workforce.

For more AI news and insights, visit the news section of our website.

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Dave Andre

Editor

Digital marketing enthusiast by day, nature wanderer by dusk. Dave Andre blends two decades of AI and SaaS expertise into impactful strategies for SMEs. His weekends? Lost in books on tech trends and rejuvenating on scenic trails.

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