After laying off around 1,000 employees last week, Google has now moved to reorganize parts of its massive 30,000-strong advertising sales unit to leverage new AI capabilities for improved efficiency.
The restructuring involves primarily its Large Customer Sales (LCS) team that handles larger ad clients. As per an internal memo by senior VP Philipp Schindler, the LCS team is being scaled down while the Google Customer Solutions (GCS) unit focusing on smaller advertisers becomes the main ads sales team.
A few hundred LCS roles globally are being eliminated through this reorganization, Google confirmed. Impacted employees can apply for internal openings.
Tapping AI to Reduce Headcount Needs
The reshuffling follows advancements by Google in AI tools that can automatically generate high-performing ads with relatively less human intervention. Its Performance Max platform with generative AI functionalities has shown particular traction in eliminating the need for specialized sales staff.
As Google lays off over 12,000 employees this year in its biggest-ever downsizing, leveraging AI to reshape sales processes allows reducing redundant roles. CEO Sundar Pichai deemed the job cuts painful but necessary for long-term health by enabling investments in new growth areas.
Through the latest ad sales rejig, Google aims to build leaner structures augmented by AI as traditional roles evolve. But the impact on headcount remains unclear, though morale has definitely taken a hit amid the ongoing turmoil.
