Cites inefficiencies and overlapping sales efforts created by rapid growth.
Citing inefficiencies created by the company's rapid growth of the past several years, Google plans to cut approximately 200 positions globally in its sales and marketing organizations.
For companies in hyper-growth such as Google has experienced, "it's almost impossible to get everything right," SVP of Global Sales and Business Development Omid Kordestani wrote in a blog post today.
"In some areas we've created overlapping organizations which not only duplicate effort but also complicate the decision-making process," Kordestani said. "That makes our teams less effective and efficient than they should be. In addition, we over-invested in some areas in preparation for the growth trends we were experiencing at the time."
Today's announcement marks only the second significant headcount reduction in Google's history. The first came in January, when the company let go approximately 100 recruiters.
While Kordestani made no reference to cost savings as a motivator in the cuts, Google has lately taken aggressive steps to trim costs and eliminate underperforming products. Among the many Google projects shuttered in the last two months: its Print Ads and Audio Ads programs, which never took off as hoped with advertisers.
Kordestani said Google initially considered alternatives to dismissing staffers but eventually decided the restructuring is necessary to maintain the effectiveness of the company's sales efforts. He said all people laid off will receive a severance package and outplacement services.
Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!
Until March 2012, Zach Rodgers was managing editor of ClickZ's award-winning coverage of news and trends in digital marketing. He reported on the rise of web companies, data markets, ad technologies, and government Internet policy, among other subjects.
Marketing Apps for Landing Pages White Paper
Marketing apps can elevate a formulaic landing page into a highly interactive user experience. Learn how to turn your static content into exciting marketing apps.
Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?
March 19, 2014