As part of the integration process between its mapping service Waze and its own map products, Google has announced job cuts within the Waze division. Chris Phillips, who leads Google’s maps division called Geo, shared this information with employees via an email on Tuesday. The email explained that Google is modifying its Waze strategy to incorporate Google ads instead of utilizing a separate advertising system. Consequently, this strategic shift will lead to layoffs within the Waze team, as mentioned in the email obtained by CNBC.
In a recent communication, Chris Phillips, the head of Google’s maps division called Geo, revealed that the company has made the decision to transfer the ads monetization responsibilities of Waze to the Global Business Organization (GBO), aligning it with the approach taken for Google Maps. As a consequence, there will be a reduction in roles related to Waze Ads monetization in areas such as sales, marketing, operations, and analytics.
With the objective of developing a more scalable and optimized Waze Ads product, the company aims to transition from the existing Waze Ads offering. Chris Phillips emphasized this in his message, stating that the company plans to wind down the current Waze Ads product while focusing on the development of new Waze Ads powered by Google Ads. The intention is to leverage the expertise and capabilities of Google Ads to enhance the advertising experience within Waze and deliver improved results for advertisers.
Phillips informed employees that the company will officially communicate the change to advertisers and partners on Wednesday. Additionally, he assured the team that they would address any inquiries and provide detailed plans for the next course of action during the upcoming Waze Town Hall scheduled for July 11. This interactive session aims to engage employees, clarify concerns, and outline the roadmap for the future of Waze following these strategic modifications.
The email did not specify the exact number of job cuts, and Google has not yet provided a comment in response to inquiries. Internal documentation reviewed by CNBC indicates that the Waze unit currently employs over 500 individuals. Google acquired Waze for approximately $1.3 billion in 2013, expanding its mapping capabilities and integrating the unique features of the Waze platform into its services.
In January, Alphabet, the parent company of Google, disclosed its plans to lay off 12,000 employees, equivalent to 6% of its workforce. This decision came in response to a significant slowdown in revenue growth over the past year. Additionally, Alphabet has been streamlining its operations by discontinuing certain projects, downsizing others, and prioritizing efficiency as a key focus area. These measures reflect the company’s commitment to optimizing its resources and adapting to evolving market dynamics.
Starting from December, Google has initiated the process of integrating Waze with its Geo unit, responsible for overseeing maps. As a part of this reorganization, the company announced the departure of then-CEO Neha Parikh. The Waze app employs a crowdsourcing approach, leveraging real-time traffic data to determine the most efficient driving route between two locations. With approximately 140 million active users, Waze has gained substantial popularity among its user base.
Expressing the challenging nature of such decisions, Phillips acknowledged the valuable contributions of the affected employees, attributing their efforts to the success and culture of Waze. He expressed gratitude and respect for their achievements. A Google spokesperson corroborated the information shared in Phillips’ email and confirmed the layoffs, emphasizing the company’s ongoing commitment to nurture the distinctive Waze brand, its cherished app, and the vibrant community of volunteers and users. This reassurance underscores Google’s dedication to the continued growth and development of Waze, highlighting its importance within the company’s broader vision.