30000 Employees are Set to Lose Jobs Due to Google AI Tools

Last Updated on December 25, 2023 by SPN Editor

Google, the search engine giant, is undergoing a significant reorganization of its ad sales unit, which comprises around 30,000 employees, according to a report by The Information. This restructuring is a result of the company’s recent advancements in artificial intelligence (AI), and the launch of the new Google AI tools. Earlier this year, Google made the difficult decision to lay off approximately 12,000 employees, marking the largest job cut in the company’s history.

The report suggests that many roles within the ad sales unit are becoming obsolete due to the introduction of Google AI tools. These innovative Google AI tools can autonomously suggest and generate effective ads for customers, thereby reducing the need for human intervention.

In 2021, Google launched its AI-powered campaign planner, Performance Max. However, during the Google I/O event earlier this year, the company decided to enhance the ad tool by adding generative AI-based capabilities. This enhancement allows for the creation of custom assets and their scaling with just a few clicks.

According to The Information, an increasing number of advertisers are now using Google AI tools, Performance Max. This adoption has eliminated the need for employees who specialize in selling ads for specific Google services, such as YouTube, Search, Display, Discover, Gmail, and Maps.

The restructuring of the ad sales unit was announced internally by Sean Downey, Google’s president of the Americas and Global Partners, during a meeting last week. However, Downey did not indicate whether the reorganization would result in further job cuts.

During the meeting, an employee asked Google CEO Sundar Pichai about the impact of the workforce reduction on the company’s growth, profit & loss, and morale. Pichai acknowledged that the decision had significantly affected employee morale and described it as one of the most challenging decisions the company has ever made. He stated, “At Google, we really haven’t had a moment quite like that in 25 years.”

Pichai described the decision as “difficult but necessary.” He explained that if the company had not made those job cuts last year, it would have led to a worse decision down the line. He further added that it would have been a major burden on the company, making it challenging to create the capacity to invest in areas during a year marked by significant global shifts.

Some Google AI tools to improve its services and create innovative solutions

Google Brain: This is a key division that leverages AI and machine learning to augment various Google services. One of its notable contributions is enhancing the quality of translations in Google Translate.

Bard: This is a chatbot that is built on the PaLM model.

Google Assistant: Since 2023, Google AI tools has developed this software application that functions as a virtual assistant.

Performance Max: Launched in 2021, this AI-powered campaign planner was later upgraded with generative AI capabilities that enable the creation and scaling of custom assets.

Gemini: Unveiled in 2023, Gemini is Google’s most advanced and largest AI model. It boasts top-tier performance across numerous benchmarks.

Gen App Builder: This tool empowers developers, including those with limited machine learning expertise, to swiftly and effortlessly create generative chat and search apps.

Generative AI in Vertex AI: This expands Google’s machine learning development platform by providing access to both foundational models and APIs in the new Model Garden. It also offers a range of tools for customizing and experimenting with models in the Generative AI Studio.