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Google's Waze Unit to Cut Jobs Amid Restructuring
Google's Waze map service is cutting jobs as it merges with Google's own map products due to a shift in its Waze strategy. As a result of this move towards the use of Google ads instead of its own, layoffs are expected. Google acquired Waze for about $1.3 billion back in 2013. Alphabet, Google's parent company, also announced earlier this year that it would be laying off 12,000 employees, which amounts to 6% of its workforce.
Details of the Restructuring and Layoffs
Chris Phillips, who oversees Google's maps division called Geo, sent an email to employees about this restructuring. The strategy shift will include Google Ads instead of Waze's own ad system, resulting in the reduction of roles in sales, marketing, operations, and analytics related to Waze's Ads monetization. The Waze unit, which has more than 500 employees, is being merged with Google's Geo unit. The current Waze Ads product will be wound down, and the company will focus on building new Waze Ads powered by Google Ads, in hopes of creating a more scalable and optimized product.
Impact on Employees and the Company
The email did not give any indication of how many jobs would be affected by this change. However, the restructuring will undoubtedly impact employees who will lose their jobs as this shift in strategy takes place. Google has not yet commented on the matter. The Waze app has approximately 140 million active users.
The Future of Waze
Google's intention is to make Waze Ads more efficient and scalable with the use of Google Ads. The current Waze Ads product will eventually be phased out as it makes way for the new product. Google hopes to achieve a more optimized Waze Ads product that would lead to better user experience and higher revenue growth.
The restructuring at Google's Waze map service will undoubtedly lead to job losses for employees in the sales, marketing, operations, and analytics roles. As Google moves to integrate Waze Ads with Google Ads, the current product will be phased out, and the new product will be built. This move is aimed at creating a more sustainable and optimized Waze Ads product, improving user experience, and ultimately leading to better revenue growth.
The restructuring at Google's Waze map service presents a cautionary tale to new businesses about the risks of mergers and acquisitions. While M&A deals can lead to significant financial gains, they can also result in workforce reduction and restructuring. For a startup or small business, a merger could seem like a viable option to increase market share or acquire a new customer base. However, it's important to weigh the potential benefits against the risks involved, particularly when it comes to the fate of current employees.
The Google Waze example shows how a merged company may choose to replace the existing workforce with employees who better fit the new company culture or objectives. In addition, the disruption caused by the restructuring could harm productivity, morale, and customer goodwill.
A key takeaway for new businesses contemplating M&A is to conduct thorough due diligence. Do not only focus on the financial and strategic aspects of the deal, but also think about the impact on employees and customers. A well-executed M&A deal can lead to a stronger organization, but it's essential to think about the human element to ensure success and minimize negative consequences.