Google Is Cutting Jobs at Waze as It Merges Mapping Products

Google has announced it will lay off employees at its Waze mapping service as the company merges the unit with its map products.

The company did not provide details on the number of layoffs, but it will reportedly merge the Waze app's advertising system with Google Ads technology.

Google Laying Off Waze Employees

CNBC first reported this news, citing an email from Chris Phillips, who leads Google's Geo unit, who said the company would notify advertisers and partners about the move and new strategy on Wednesday.

Phillips said the company was changing its Waze strategy to include Google ads rather than using a separate ads system, which would result in layoffs.

"We have decided to transition Waze's ads monetization to be managed by the Global Business Organization (GBO), similar to Google Maps. Unfortunately, this will result in a reduction of Waze Ads monetization-focused roles in sales, marketing, operations and analytics," Phillips wrote in the email.

According to Reuters, Google said it started transitioning Waze's existing advertising system to Google Ads technology to create "a better, more seamless long-term experience for Waze advertisers."

"As part of this update, we've reduced those roles focused on Waze Ads monetization," the company noted.

Employees, who demanded answers from leadership, were already told that Phillips' team would answer questions and share its future plans at their "next Waze Town Hall" on July 11. According to CNBC, the Waze unit has over 500 employees. Google reportedly acquired Waze in 2013 for about $1.3 billion.

Combining Waze and Google Maps

Since December, Google has been consolidating Waze with its own Geo unit, which handles maps to cut costs.

According to TechCrunch, the company's then-CEO Neha Parikh has stepped down as a part of the shakeup. Google previously told The Wall Street Journal that the company plans to keep Waze as a standalone service. The app is known for its crowdsourcing of en route information like locations of cop cars, roadkill, and speed cameras.

At the time, Google said it did not expect any layoffs as part of the new strategy.

Phillips said laying off some employees was "incredibly difficult," as each of these "Wazers contributed to Waze's success and culture."

"I want to express my gratitude and respect for what they have achieved," he added.

Speaking at Code Conference in September, Alphabet and Google CEO Sundar Pichai said he wanted to make Google 20% more productive by running "on fewer resources."

He revealed that the company had become slower due to overhiring and hinted that merging teams working on overlapping products would help Google stay on top.

In January, Alphabet announced it was laying off 6% of its workforce, or 12,000 employees, after a year of decelerating revenue growth. The Google parent company has also abolished several projects and downsized others, saying it will focus on becoming more efficient.