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  • Writer's pictureSamiksha Jain

Google's Sales Shuffle: A Wave of Layoffs


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Google recently let go of over a thousand employees from different departments including their digital assistant, hardware, and engineering teams. Following this, there's new information that Google is also reducing its workforce in the advertising sales department. Several hundred jobs in this area are being cut.


Philipp Schindler, a high-ranking executive at Google, shared in a memo that these job cuts will mostly affect the Large Customer Sales (LCS) unit. This is the team responsible for selling advertisements to big companies. He also mentioned that the Google Customer Solutions team (GCS), which deals with ad sales to smaller businesses, will become the main team for ad sales.


Chris Pappas, a spokesperson for Google, said that Google regularly reviews its ad sales team's structure. He explained that they organize the team to ensure they can meet the needs of their customers effectively. Unfortunately, this means that a few hundred jobs globally will be cut. However, those affected by these job cuts will have the opportunity to apply for other positions within Google.


Earlier in the week, Google had announced more layoffs as part of their plan to cut costs. A Google spokesperson said that in the second half of 2023, they made changes in several teams to increase efficiency and better allocate resources to their main products. This reorganization is still ongoing and includes job cuts worldwide.


These layoffs suggest that companies might continue to reduce their workforce this year, as they increasingly use artificial intelligence (AI) and automation. A recent report from The Information suggests that Google might cut as many as 30,000 jobs in 2024. This is because they are moving towards relying more on AI tools that can automatically create and suggest ads, potentially performing well with minimal human help.


Amazon is also making job cuts. They plan to lay off several hundred employees in their streaming and studio operations, including those at Prime Video and Amazon MGM Studios in the Americas. According to Business Insider, Amazon is reportedly pushing managers to give lower performance ratings to employees who don't follow the Return to Office policy. Some believe this could be part of a larger strategy, sometimes referred to as "quiet firing," where employees are encouraged to leave.


FAQs


Q1. What departments at Google are affected by the recent layoffs?

The layoffs at Google have affected several departments, including digital assistant, hardware, engineering teams, and most recently, the advertising sales department, especially the Large Customer Sales (LCS) unit.


Q2. What reasons did Google cite for these layoffs?

Google has mentioned increasing efficiency and realigning resources with top product priorities as the main reasons for these layoffs.


Q3. Has Amazon also announced layoffs?

Yes, Amazon is laying off several hundred employees in its streaming and studio operations, impacting Prime Video and Amazon MGM Studios in the Americas.


Q4. What is the speculated reason behind Amazon's reported 'quiet firing' strategy?

Amazon's reported 'quiet firing' strategy, which involves encouraging employees to leave by assigning lower performance ratings, is speculated to be a method to reduce the workforce subtly, especially among those not complying with their Return to Office policy.


Q5. How can companies manage layoffs ethically?

Companies should handle layoffs ethically by providing clear communication, offering severance packages, providing support for transition, and if possible, offering outplacement services to help affected employees find new jobs.


Q6. What trends are influencing layoffs in the tech industry?

Key trends include economic pressures, evolving technology (like AI and automation), changing consumer demands, and global events impacting business operations. Companies are continuously adapting to these changes, which can sometimes lead to workforce reductions.


Q7. How is AI impacting job security in the tech industry?

AI is automating certain tasks, which can lead to job displacement. However, it also creates new opportunities in AI development, data analysis, and tech support. Employees should focus on skills that complement AI technologies.


Q8. What skills are becoming more valuable in the tech industry due to automation?

Skills in AI, machine learning, data science, cybersecurity, and human-centered design are becoming more valuable due to automation.


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