Following the 12,000 layoffs at the beginning of the year, Google was revealed to be reorganizing its advertising sales department. AI automation tools put 30,000 employees at risk of layoffs.
According to reports, following 12,000 layoffs, Google plans to reorganize its advertising sales department – which will put 30,000 employees at risk of layoffs. This year’s technology industry can be said to have seen cuts from the beginning of the year to the end of the year, with more cuts being made.
This time, Google’s departmental restructuring plan has made workers discover that in addition to facing an economic downturn and difficult employment, they may also be replaced because their performance-price ratio is not as good as AI.
At a recent department meeting, Sean Downey, who is responsible for advertising sales for large accounts in the Americas, said that Google plans to reorganize its advertising sales team.
People familiar with the matter said that Google will consolidate the department’s employees, which may include layoffs and the reassignment of employees in the large account sales department responsible for overseeing relationships with major advertisers.
These employees are responsible for designing customized advertising campaigns for major clients and recommending new advertising opportunities based on the client’s product portfolio. ——With the application of artificial intelligence in Google’s advertising business, in many scenarios, the need for these sales personnel has become less and less.
As of a year ago, Google had about 8,000 employees worldwide dedicated to sales to large accounts, and another 5,500 employees worked in Google’s customer solutions department, responsible for small and medium-sized accounts.
Business Insider previously reported that Google has made adjustments to some employees. Some employees expect that Google will formally announce the adjustment plan next month.
Google’s “money printing machine”
While Google is a giant in the tech world, its main business has always been online advertising.
Google has been the leader in the online advertising market for more than a decade, with parent company Alphabet generating more than 80% of its revenue from Google ads.
How does Google’s “money printing machine” work?
Over the years, Google has developed and acquired a series of ad technology tools. Powered by technology and Google’s platform, content publishers can make money from ads, and ad buyers can search for what they want on Google Search, YouTube, Maps or other websites. Attract people.
——The platform has content, and publishers make money; merchants buy ads and accurately recommend their own products, and they also make money.
Of course, the ultimate winner is Google.
And when Google established this system, the entire process began to run automatically, no longer requiring Google to worry about it, but it could continue to bring in revenue – a real “money printing machine.”
Among them, “Dynamic Search Ads” help Google create approximately US$15 billion in additional revenue every year.
In addition, Google has also developed a new tool called Performance Max (PMax), which provides ad buying recommendations for more Google services and can also recommend and create new ads that perform well for ad buyers.
——This time, not only is it accurate recommendation, but also the problem of advertising production is solved.
Google made PMax available to all advertisers in November 2021, and advised customers that switching from dynamic search ads to PMax can improve ad performance by 15%.
As a result, more and more advertisers are adopting PMax.
But this way, some employees who specialize in selling ads for a certain Google service, such as search, no longer have to design ads for large clients.
Where will these employees who have been replaced by AI tools go?
At the same time, Google can also use the recently launched Gemini to encourage advertisers to spend more money by testing how different versions of ads improve performance.
For months, there have been concerns about layoffs in Google’s ad sales division as the company recovers from its recent advertising slump.
When asked about the possibility of layoffs at a department meeting in November, Google Chief Commercial Officer Philipp Schindler did not answer directly.
Schindler told employees that no company is exempt from restructuring and that Google must invest in areas of growth.
After the company experienced its largest layoffs all year, Google CEO Sundar Pichai recently publicly stated that the company’s morale had taken a major hit after the layoffs.
But Pichai believed that it would be worse for the company if a certain number of people were not laid off, so the decision was “difficult but necessary.”
“In a year like this, when the world has changed so much, it’s difficult to create the ability to invest in various fields.”
In January this year, Google parent company Alphabet announced that it would lay off 12,000 people worldwide, equivalent to 6% of its global workforce.
On April 4, hundreds of employees went on strike at Google’s London offices.
In a year like this, we continue to hear about various layoffs:
The progress of AI will eventually replace humans in many jobs.
So here comes the question:
Will humans become expendable in the field of technology?
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