Google Reports on Major Sales Team Restructuring
Google, a forerunner in online ad sales reportedly has plans to significantly reorganize its massive 30,000-person ad sales unit. Sean Downey, responsible for directing ad sales to the significant clientele in America, kickstarted this restructuring during a company-wide assembly last week, as reported by The Information. The specifics of the restructuring are yet to be released, including whether layoffs will be a part of the process.
Implications and Significance
This restructuring can potentially be seen as a clear sign of Google Ads gearing more towards a fully automated system. This might pose a disadvantage for advertisers with limited budgets, as they often lack the necessary resources to monitor and experiment with asset and budget variations driven by AI.
In a recent revelation, Google unveiled its impressive overall revenue increase of 11% year-on-year in Q3, reaching an astounding $76.7 billion. In this total, there was a noteworthy surge in ad revenue from $54.5 billion to a $59.65 billion, marking a record high in the last nine quarters. Given this impressive financial performance, potential job cuts may seem unexpected.
A move towards AI and Machine Learning
Google, in its continuous commitment towards investment in AI and Machine Learning, has timed this news to coincide with its go-ahead for increased ad purchasing, a move that significantly reduces human involvement. Additionally, it has been reported by Search Engine Land that Google aims to enhance its support system in Google Ads by integrating AI to a greater extent.
Google’s Official Stance
A representative from Google chose not to immediately respond to requests for comments on the matter.
Previous Major Layoffs
Earlier this year, in January, Google’s CEO Sundar Pichai announced that the company would be letting go of 12,000 employees and contractors. This equated to a significant 5% of their whole workforce, marking the company’s first-ever major layoff. He commented on this in an email sent to staff, “I have some difficult news to share. We’ve decided to reduce our workforce by approximately 12,000 roles. We’ve already sent a separate email to employees in the US who are affected. In other countries, this process will take longer due to local laws and practices.”
Worth noting, however, is that Google did not announce layoffs in their recent revelation. The company only confirmed a restructuring of the ad sales unit in its recent statement.
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