The tech giant plans to streamline its ad sales unit by leveraging AI technology, potentially leading to further job cuts.
Google is set to reorganize a significant portion of its ad sales unit, comprising around 30,000 employees, following recent advancements in artificial intelligence (AI), according to a report by The Information. The company’s of AI-based tools has made several roles in the ad sales unit redundant, as the technology can now automatically suggest and create effective ads with minimal human intervention. This move comes after Google’s largest-ever job cut earlier this year, which saw approximately 12,000 employees laid off.
Streamlining Ad Sales with AI:
The report highlights that Google’s AI-powered campaign planner, Performance Max, has gained traction among advertisers since its launch in 2021. The tool has eliminated the need for specialized employees who sell ads for specific Google services, such as YouTube, Search, Display, Discover, Gmail, and Maps. With generative AI capabilities added to Performance Max, advertisers can easily create custom assets and scale them with just a few clicks, further reducing the need for manual intervention.
Internal Announcement and Job Cuts:
The restructuring of the ad sales unit was internally announced by Sean Downey, Google’s president of the Americas and Global Partners, during a recent meeting. However, it remains unclear whether this reorganization will result in additional job cuts. The Information’s report does not provide details on the potential impact on employment within the ad sales unit.
Sundar Pichai on the Previous Job Cuts:
During the meeting, Google CEO Sundar Pichai addressed 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 and described the decision to reduce the workforce as one of the most difficult in the company’s history. He emphasized that the job cuts were necessary and prevented a worse outcome for the company in the long run. Pichai explained that without the cuts, Google would have faced challenges in adapting to the global shifts and investing in new areas.
Google’s reorganization of its ad sales unit reflects the company’s commitment to leveraging AI technology to streamline operations and improve efficiency. The of AI-based tools, such as Performance Max, has reduced the need for manual intervention in ad creation and management. While the impact on job security remains uncertain, Google’s focus on AI-driven automation underscores the evolving landscape of digital advertising. As the industry continues to embrace AI, companies must adapt their workforce to align with these technological advancements.