Google cuts jobs at Waze as it continues to merge mapping products

Google The company is laying off workers as the Waze mapping service unit merges with its own map product.

Chris Phillips, the head of Google’s Maps division Geo, said in an email to employees Tuesday that the company is tweaking its Waze strategy to include Google ads instead of using a separate ad system. The email, seen by CNBC, said the move would result in layoffs.

“We have decided to transition Waze advertising monetization to be managed by a Global Business Organization (GBO), similar to Google Maps,” Phillips wrote. There are fewer monetization-focused roles.”

The company wants to “create a more scalable and optimized Waze Ads product,” Phillips wrote, adding that it will “phase out the current Waze Ads product while we focus on building new ones powered by Google Ads.” Waze Ads”.

Phillips said the company will notify advertisers and partners of the change on Wednesday, and told employees his team will be at “our next Waze town hall” on July 11 to answer questions and share next steps .

The email did not say how many jobs would be cut. The Waze unit has more than 500 employees, according to internal documents seen by CNBC. In 2013, Google acquired Waze for approximately $1.3 billion.

After a year of sharply slowing revenue growth, Google parent Alphabet announced in January that it was laying off 12,000 workers, or 6% of its workforce. The company also canceled some projects and downsized others, and said it was working on efficiency gains.

Since December, Google consolidate Waze has its own geography department that oversees the maps. As part of the restructuring, the company announced that then-CEO Neha Parikh would step down.

The Waze app uses crowdsourcing technology to determine the fastest driving route from one location to another using the latest traffic information. Waze has approximately 140 million active users.

“Decisions like this are very difficult,” Phillips wrote. “Each of the Wazes has contributed to Waze’s success and culture, and I want to express my gratitude and respect for what they’ve accomplished.”

In a statement, a Google spokesperson confirmed the layoffs and other details in Phillips’ email, saying the company “remains deeply committed to growing Waze’s unique brand, its beloved app, and thriving volunteers.” and user communities.”

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