On Tuesday, the Alphabet-owned search engine behemoth notified that it is snipping jobs at its mapping app Waze as it looks forward to a merger with the app’s advertising system with Google Ads technology, without giving details on the number of employees affected by the layoffs.
The company is shifting Waze over to Google’s ads system, and that amendment will induce cuts at Waze in “sales, marketing, operations and analytics,” Chris Phillips, VP and GM of Google’s Geo unit, mentioned in an email seen by the publication. Phillips’ email didn’t state the exact number of jobs that would be cut at Waze, which has more than 500 employees, as per CNBC.
Google said, “In order to create a better, more seamless long-term experience for Waze advertisers, we’ve begun transitioning Waze’s existing advertising system to Google Ads technology. As part of this update, we’ve reduced those roles focused on Waze Ads monetization.”
The tech giant took over mapping app Waze for about $1.3 billion in 2013.
Last year in December, Google had stated that it would merge Waze and Google Maps teams to ease up mapping processes, making it a part of the Google Geo portfolio, its division of real-world mapping products that comprise of Google Maps, Google Earth, and Street View.
The news was initially reported by CNBC earlier in the day, and it also mentioned an email from Chris Phillips, who heads the company’s Geo division. He furthered that Google will inform advertisers and partners about the decision on Wednesday.
“In order to create a better, more seamless long-term experience for Waze advertisers, we’ve begun transitioning Waze’s existing advertising system to Google Ads technology. As part of this update, we’ve reduced those roles focused on Waze Ads monetization,” Google, which acquired Waze for about $1.3 billion in 2013, said.
Image Source: The Verge
In a statement, Waze confirmed the layoffs to The Verge. “Google remains deeply committed to growing Waze’s unique brand, its beloved app and its thriving community of volunteers and users,” Caroline Bourdeau, Waze’s head of PR, said in the statement. “In order to create a better, more seamless long term experience for Waze advertisers, we’ve begun transitioning Waze’s existing advertising system to Google Ads technology. As part of this update, we’ve reduced those roles focused on Waze Ads monetization and are providing employees with mobility resources and severance options in accordance with local requirements.” We’ve asked Bourdeau for details about how many employees will be laid off.
The layoffs are happening a few months after Google said it would be combining Waze into the Geo team, a group that also includes products like Google Maps, Google Earth and Street View. At the time, Google wasn’t planning layoffs as part of the change, The Wall Street Journal reported.
Google has been moving to reduce costs amid slowing demand last year for digital advertising, which fuels the company’s revenue. In January, Alphabet said it would cut approximately 12,000 jobs, more than 6% of its global workforce. The company in April reported first-quarter sales that were higher than estimates on stronger-than-expected advertising sales for search and the YouTube video site.
