Google is reportedly planning a significant reorganization of its 30,000-strong ad sales unit due to recent advancements in artificial intelligence (AI), according to a report by The Information. This comes after the company carried out a major job cut earlier this year, letting go of around 12,000 employees, marking the largest job reduction in Google’s history.
The report suggests that a substantial number of positions in the ad sales unit are becoming obsolete due to the introduction of new AI-based tools by Google. These tools can automatically suggest and create ads that perform well for customers, requiring minimal attention from employees. One such AI-powered tool is Performance Max, a campaign planner launched by Google in 2021. The company further enhanced this ad tool with generative AI-based capabilities at the Google I/O event this year, making it easier to create custom assets and scale them with a few clicks.
Performance Max has gained popularity among advertisers, leading to a reduction in the need for employees specializing in selling ads for specific Google services like YouTube, Search, Display, Discover, Gmail, and Maps.
The reorganization of the ad sales unit was internally announced by Sean Downey, Google’s president of the Americas and Global Partners, in a meeting last week. However, it was not disclosed whether this reorganization would result in additional job cuts.
During the meeting, an employee asked Google CEO Sundar Pichai about the impact of the previous job cuts on the company’s growth, profit and loss (P&L), and employee morale. Pichai acknowledged the significant impact on employee morale, describing it as one of the most difficult decisions for the company. He stated that the decision was challenging but necessary, and if the job cuts hadn’t been implemented, it would have negatively affected the company’s ability to invest in critical areas during a year of substantial global shifts.
Pichai emphasized that not making the tough decision last year would have been a major overhang on the company, making it challenging to create the capacity to invest in various areas. He characterized the job cut as a decision that had long-term strategic benefits for Google.
The reorganization is attributed to Google’s ongoing efforts to streamline operations, increase efficiency, and leverage AI technologies to automate certain tasks. The company’s continued focus on innovation and adapting to changes in the advertising landscape is evident in its integration of advanced AI capabilities into ad-related tools.
It remains to be seen how this reorganization will unfold, but it underscores the broader trend of tech companies incorporating AI and automation to optimize their operations and stay competitive in dynamic markets.
