John Paul M. Joaquin Tech 06.28.2023 02:Jun AM EDT

Google Lays Off Waze Staff, Continues Merging Mapping Apps

Google has different reasons for laying off some of its employees at Waze.

The popular search giant recently confirmed it is laying off an unspecified number of employees at Waze to merge it with its other mapping product, Google Maps, and to move it over to Google's ads system.

Google has been merging Waze with its own mapping products since late 2022, according to a Reuters report.

Waze Layoffs Details

Chris Phillips, Google's head for its maps division called Geo, said that the company is shifting its strategy at Waze; it wants to merge the app's advertising system with Google Ads technology, which will result in layoffs, per a CNBC report.

Google's Geo division oversees the company's mapping products like Google Maps, Google Earth, and Street View.

While Phillips didn't mention how many Waze employees will lose their jobs because of the merger, he did reveal that it would affect Waze's Ads monetization-focused roles in sales, marketing, operations, and analytics. However, the internal documentation CNBC saw suggests that the number of affected employees would reach more than 500 staffers.

He also added that Google hopes that the merger will create "a more scalable and optimized Waze Ads product," which will wind down the current Waze Ads product while the company focuses on building new Google Ads-powered Waze Ads.

Caroline Bourdeau, Waze's head of PR, confirmed the layoffs as official in a statement to The Verge. She mentioned that Google finds the layoffs necessary to create a "better, more seamless long term experience for Waze advertisers" and that it would mainly affect the roles focused on Waze Ads monetization.

She added that the company would provide affected employees with mobility resources and severance options under local requirements.

Waze's employees are not the only ones affected by Google's efforts to merge it with its Ads technology - the company's then-CEO, Neha Parikh, stepped down from her role during its initial efforts to achieve its goal in Dec. 2022. During this time, Google wasn't planning layoffs as part of the merger.

"Decisions like these are incredibly difficult," Phillips wrote. "Each one of these Wazers contributed to [the app's] success and culture, and I want to express my gratitude and respect for what they have achieved."

Google has yet to address the development officially.

Google-Waze History

Waze, according to Investopedia, is a community-driven navigation app an Israeli company created. It uses real-time data from the app's users to provide the best route to their destination while also taking accidents, traffic jams, speed traps, constructions, and other time-consuming obstacles into account.

Google mentioned that Waze also uses the information it collects to calculate average speed, check for errors, improve road layout, and learn road and turn direction.

Google acquired the company that made Waze in 2013 for $1.3 billion, though it got to keep its own ads system, which remained separate to this day since Google has yet to officially announce it had merged the app's ads system with its own.