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Todd Haselton | CNBC
Google is slicing jobs at its Waze mapping service because it merges the unit with its personal map merchandise.
In an e mail to workers on Tuesday, Chris Phillips, who oversees Google’s maps division referred to as Geo, mentioned the corporate is shifting its Waze technique to incorporate Google advertisements slightly than utilizing a separate advertisements system. That transfer will lead to layoffs, in keeping with the e-mail, which was considered by CNBC.
“We have decided to transition Waze’s ads monetization to be managed by the Global Business Organization (GBO), similar to Google Maps,” Phillips wrote. “Unfortunately, this will result in a reduction of Waze Ads monetization-focused roles in sales, marketing, operations and analytics.”
The firm hopes to “create a more scalable and optimized Waze Ads product,” Phillips wrote, including that it’ll “wind down the current Waze Ads product while we focus on building new Waze Ads powered by Google Ads.”
Phillips mentioned the corporate could be notifying advertisers and companions of the change on Wednesday, and informed workers that his crew will reply questions and share its plans for subsequent steps at “our next Waze Town Hall” on July 11.
The e mail did not say what number of jobs could be eradicated, and Google did not instantly reply to request for remark. The Waze unit has greater than 500 workers, in keeping with inner documentation considered by CNBC. Google acquired Waze for about $1.3 billion in 2013.
Following a yr of dramatically decelerating income progress, Google dad or mum Alphabet introduced in January that it was shedding 12,000 workers, or 6% of its workforce. The firm has additionally eradicated some initiatives, downsized others and mentioned it is specializing in changing into extra environment friendly.
Since December, Google has been consolidating Waze with its personal Geo unit, which oversees maps. As part of the shakeup, the corporate introduced then-CEO Neha Parikh could be stepping down.
The Waze app makes use of a crowdsourcing approach that enables it to find out the quickest driving route from one location to a different, with the latest visitors data. Waze has roughly 140 million energetic customers.
“Decisions like these are incredibly difficult,” Phillips wrote. “Each one of these Wazers contributed to Waze’s success and culture, and I want to express my gratitude and respect for what they have achieved.”
A Google spokesperson did not instantly present a remark.
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