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Google Plans Reorganization of Ad Sales Unit, Potentially Impacting 30,000 Jobs

In a significant move, Google is reportedly considering a major overhaul of its 30,000-strong ad sales unit due to recent advancements in artificial intelligence (AI), as outlined in a report by The Information. Earlier this year, the tech giant made headlines with the largest job cut in its history, letting go of approximately 12,000 employees.

The report suggests that the restructuring is prompted by the redundancy of many roles within the ad sales unit, attributed to Google’s introduction of new AI-based tools. These tools can autonomously suggest and create highly-performing ads with minimal employee intervention.

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Performance Max, Google’s AI-powered campaign planner introduced in 2021, gained enhanced generative AI capabilities at the Google I/O event this year. This addition facilitates the creation of custom assets with ease, allowing for scalability in just a few clicks.

The adoption of Performance Max by an increasing number of advertisers is cited as a reason for the diminishing need for specialized employees dedicated to selling ads for specific Google services like YouTube, Search, Display, Discover, Gmail, and Maps.

Internally, the restructuring news was communicated by Google’s President of the Americas and Global Partners, Sean Downey, during a meeting last week. However, it remains unclear whether this reorganization will result in further job cuts, as stated in The Information’s report.

Addressing concerns about the previous job cuts, Google CEO Sundar Pichai responded to an employee’s question during the meeting, acknowledging the impact on morale and characterizing the decision as one of the “most difficult” in the company’s history. Pichai emphasized the necessity of the move, stating that not making those cuts would have had adverse effects on the company’s ability to invest in crucial areas, given the significant shifts in the global landscape.

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