Google Planning To Reorganise Ad Sales Department, No Word Of Layoffs Yet: Report

Google, owned by Alphabet, has unveiled its intentions to reorganise a significant segment of its 30,000-strong ad sales unit, as reported by The Information on Tuesday, citing an informed source. Sean Downey, the executive overseeing ad sales to major clients in the Americas, addressed a department-wide meeting last week, outlining Google’s plan to restructure its ad sales teams. While specifics regarding potential layoffs were not disclosed, the aim is to consolidate staff, potentially through reassignment of personnel within the large customer sales unit responsible for managing relationships with key advertisers.

The proposed reorganisation aligns with Google’s increased reliance on machine-learning techniques to facilitate customer ad purchases across its search engine, YouTube, and other platforms, as highlighted in the report.

This move follows Alphabet’s earlier announcement in January of plans to reduce its global workforce by 6 per cent, translating to 12,000 job cuts worldwide. Furthermore, in June, Google implemented layoffs at the Waze mapping app, integrating its advertising system with Google Ads technology.

In a parallel development, tech giant Intel is set to undergo its fifth round of workforce reductions this year, shedding light on a broader trend of major U.S. companies downsizing despite easing recession concerns. According to media reports, Intel is preparing to lay off approximately 235 employees at its Folsom (Sacramento County) research and development facility. The layoffs are scheduled to commence on December 31 and unfold over two weeks.

Intel’s cost-cutting initiative, aimed at achieving a $10 billion reduction by 2025, involves various strategies, including layoffs, reduced working hours, and potential division sales. Company spokesperson Addy Burr emphasised that Intel is actively working to accelerate its strategic goals while concurrently reducing costs, and additional cuts may be anticipated in the coming year.

As the tech industry undergoes transformative shifts, these restructuring efforts by Google and Intel underscore the evolving dynamics and challenges faced by major players in the sector.