Google’s ad sales division is being reorganized as the business deploys AI-powered tools for designing and recommending advertising. This change eliminates the requirement for specialized staff to sell advertisements for certain Google services. An article in The Information states that Google’s recent AI advancements have led to plans to restructure a significant portion of the company’s 30,000-strong ad sales business. Among the most notable layoffs in Google history occurred earlier this year, when the tech giant let go of around 12,000 workers.
A large number of ad sales unit positions are reportedly being eliminated as a result of Google’s new AI-powered technologies that can generate high-performing ads for clients with minimal human intervention. Notably, Google had planned to deploy its AI-powered campaign planner, Performance Max, in 2021, but during the Google I/O event earlier this year, the firm chose to add generative AI-based capabilities to the ad tool, “making it easier to create custom assets and scale them in a few clicks.”
Ads for individual Google products, including “YouTube, Search, Display, Discover, Gmail, and Maps,” are no longer needed thanks to Performance Max, which is being used by an increasing number of marketers, according to the Information.
In a meeting last week, Sean Downey announced restructuring the ad sales unit. According to The Information, the CEO needed to indicate whether the reorganization would result in another wave of job losses.
Sundar Pichai, CEO Of Google, Speaks Out Against The 12,000 Layoffs:
During the meeting, a staff member asked Sundar Pichai, “It has been over a year since we took the difficult decision to decrease our employment. What effect did this decision have on our growth, profit and loss, and morale?” The Google CEO responded by admitting that the decision had a significant influence on employee morale, calling it “one of the most difficult decisions for the company.” He went on to say, “At Google, we haven’t had a moment quite like that in 25 years.”
The decision was described as “difficult but necessary” by Sundar Pichai. The CEO of Alphabet stated that if the business had not slashed those positions last year, it could have been “a worse decision down the line.”
“It would have been a significant burden on the company.” “I think it would have been very difficult to create the capacity to invest in areas in a year like this with such a big shift in the world,” Google CEO said.
