Google Announces Major Job Cuts in Ad Sales, Shifts Focus to AI and Automation

Google is downsizing its advertising sales team, part of a broader trend of job cuts at the tech giant owned by Alphabet Inc GOOG GOOGL. 

This decision highlights the ongoing reduction in workforce across various sectors, as companies increasingly turn to artificial intelligence software and automation to manage tasks more efficiently, Reuters reports. 

Recently, Google announced layoffs in its Voice Assistant units and hardware teams, including those responsible for Pixel, Nest, and Fitbit products, as well as in its augmented reality division.

Also Read: How AI Could Change the Game for American Workers According to Top CEOs?

The company focuses on its customer solutions unit, which caters to medium-level advertiser clients, as a primary area for future growth. 

This move follows similar layoffs at Amazon.com Inc AMZN, which included several hundred employees in streaming and studio operations, and 500 workers at Twitch, its video streaming platform.

Previous reports indicated that Google is looking to reorganize its large ad sales unit, which employs around 30,000 people. 

Sean Downey, who leads ad sales for key clients in the Americas, has announced plans to restructure the team, focusing on consolidating staff within the unit that manages significant advertiser relationships. 

While layoff specifics were not detailed, this restructuring may involve reassignments and potential job cuts. 

This move is part of Google’s shift towards machine learning and automation to improve ad sales efficiency across platforms like its search engine and YouTube. 

In December, Google launched its AI model, Gemini, as part of its efforts to compete with Microsoft Corp MSFT in the rapidly advancing field of AI. 

In January 2023, Alphabet had already announced a significant reduction in its workforce, planning to cut 12,000 jobs, which represents 6% of its global workforce. 

These layoffs and strategic shifts underscore the tech industry’s evolving landscape and the growing emphasis on AI and automation to streamline operations and stay competitive.

Price Action: GOOG shares traded lower by 1.89% at $141.36 on the last check Wednesday.

Also Read: Google’s Mysterious Layoff Reportedly Claims Over 1,000 Employees Overnight – What’s Happening Behind Closed Doors?

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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