Google is restructuring its advertising team by flattening management layers to enhance efficiency and decision-making amid slowing growth and increased competition.
Google is taking significant steps to streamline its management structure within its U.S. advertising division, specifically the Google Customer Solutions (GCS) team. This decision, reported by Business Insider, was communicated to employees through a memo from Vice President John Nicoletti last month.
This restructuring is particularly noteworthy given that Google’s advertising business remains a critical source of revenue for the company. The move appears aimed at accelerating decision-making processes and reducing bureaucratic hurdles as the company faces intensified competition from AI-driven rivals. In an all-hands meeting held in August, Google leadership revealed that the number of managers overseeing small teams had been reduced by 35% compared to the previous year.
In his memo, Nicoletti outlined a key change: the elimination of the “Managers of Managers” (MoMs) layer across various teams. While the memo did not mention any layoffs, it indicated that affected employees would transition into other roles. The specific number of managerial positions being cut has not been disclosed.
“Unlocking our next stage of growth means building our team strategy and structure for the long term,” Nicoletti stated. A Google spokesperson confirmed the restructuring, emphasizing that the company is continually making adjustments to enhance efficiency, reduce layers, and better serve its customers.
Nicoletti elaborated that the changes in ad sales, set to take effect in January, are designed to empower teams by fostering agility in decision-making and ensuring that leadership remains closely connected to the work being done. This will involve a direct reporting structure where managers from select teams will become “heads of business,” reporting directly to directors without an intermediary management layer.
One specific area of change will occur within the mid-market sales group, where the role of account strategy management will be removed. This role previously acted as a barrier between account executives and managers, as well as the heads of business.
Additionally, Nicoletti announced plans to reopen account executive positions to bolster capacity for fostering deep customer partnerships. “One of the reasons that we’ve been so successful is that we’re outstanding at driving momentum through continuous change,” he noted. “This will be no different.”
Google’s decision to flatten its management structure mirrors similar moves made by other major companies, including Intel, Amazon, and Microsoft, all of which have sought to improve operational efficiency by reducing management layers.
While the GCS division is the primary focus of the memo, it is important to note that it is not the only team involved in ad sales. Google also operates teams dedicated to Large Customer Sales (LCS), which cater to the company’s largest and most complex clients.
As Google navigates these changes, the emphasis on agility and efficiency in its advertising division reflects broader trends in the tech industry, where companies are increasingly prioritizing streamlined operations to maintain competitiveness.
Source: Original article