Google Plans to Restructure Ad Sales Unit: Report

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Alphabet-owned Google is set to undergo a substantial reorganization of its 30,000-person ad sales unit, according to sources familiar with the matter. The Information reported on Tuesday that Sean Downey, responsible for ad sales to major customers in the Americas, revealed the company’s plans during a department-wide meeting last week. In 2022, the company posted more than $224 billion in revenues from its ads.

While the details of the restructuring remain unspecified, Downey did not clarify whether the changes would involve employee layoffs. The reported intention is to consolidate staff, potentially through reassignments within the large customer sales unit overseeing relationships with major advertisers.

The move comes as Google continues to increase its reliance on machine-learning techniques to facilitate ad purchasing on platforms such as its search engine and YouTube.

This shift towards automation in the ad sales unit follows Google’s announcement earlier this year of plans to cut 12,000 jobs globally, constituting approximately 6% of its workforce.

In June, Google implemented layoffs at the mapping app Waze as part of the integration of the app’s advertising system with Google Ads technology.

The IT industry has seen significant layoffs in the last couple of years as companies look for greater profits and look to further utilize new technologies including automation.

Despite Google’s robust financial performance, with an 11% year-on-year increase in overall revenue to $76.7 billion in the third quarter of 2023, the focus on automation raises questions, particularly for advertisers with smaller budgets. The potential impact on jobs and the broader implications of this restructuring remain to be officially addressed by Google.

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