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Todd Haselton | CNBC
Google is reducing jobs at its Waze mapping service because it merges the unit with its personal map merchandise.
In an e mail to staff on Tuesday, Chris Phillips, who oversees Google’s maps division referred to as Geo, stated the corporate is shifting its Waze technique to incorporate Google adverts somewhat than utilizing a separate adverts system. That transfer will end in layoffs, in line with the e-mail, which was considered by CNBC.
“We have now determined to transition Waze’s adverts monetization to be managed by the World Enterprise Group (GBO), much like Google Maps,” Phillips wrote. “Sadly, this may end in a discount of Waze Advertisements monetization-focused roles in gross sales, advertising and marketing, operations and analytics.”
The corporate hopes to “create a extra scalable and optimized Waze Advertisements product,” Phillips wrote, including that it’ll “wind down the present Waze Advertisements product whereas we deal with constructing new Waze Advertisements powered by Google Advertisements.”
Phillips stated the corporate can be notifying advertisers and companions of the change on Wednesday, and advised staff that his group will reply questions and share its plans for subsequent steps at “our subsequent Waze City Corridor” on July 11.
The e-mail did not say what number of jobs can be eradicated, and Google did not instantly reply to request for remark. The Waze unit has greater than 500 staff, in line with inside documentation considered by CNBC. Google acquired Waze for about $1.3 billion in 2013.
Following a yr of dramatically decelerating income development, Google mum or dad Alphabet introduced in January that it was shedding 12,000 staff, or 6% of its workforce. The corporate has additionally eradicated some initiatives, downsized others and stated it is specializing in changing into extra environment friendly.
Since December, Google has been consolidating Waze with its personal Geo unit, which oversees maps. As part of the shakeup, the corporate introduced then-CEO Neha Parikh can be stepping down.
The Waze app makes use of a crowdsourcing approach that enables it to find out the quickest driving route from one location to a different, with the latest site visitors data. Waze has roughly 140 million energetic customers.
“Choices like these are extremely tough,” Phillips wrote. “Every considered one of these Wazers contributed to Waze’s success and tradition, and I need to specific my gratitude and respect for what they’ve achieved.”
A Google spokesperson did not instantly present a remark.
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