Google is flattening management layers in its core U.S. ad sales unit, according to a Business Insider report. U.S. employees in the Google Customer Solutions (GCS) division were informed last month about this change via memo sent by its Vice President John Nicoletti.
This restructuring is particularly notable because Google’s ad business still accounts for the bulk of its revenue. The decision to restructure might have been taken to speed up decisions and reduce bureaucracy as growth slows and competition from AI-driven rivals intensifies. In an all-hands meeting in August, Google leaders told staff that the company had reduced the number of managers overseeing small teams by 35% over the previous year.
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Nicoletti mentioned in the memo that one change would be to remove the layer of “Managers of Managers,” or MoMs, across several teams. No layoffs were mentioned in the email, which said that the affected employees would move into other roles. The exact number of manager roles being removed is not known.
“Unlocking our next stage of growth means building our team strategy and structure for the long term,” Nicoletti wrote. A Google spokesperson confirmed the changes, saying “our teams have continued to make changes to operate more efficiently, remove layers, and better serve our customers.”
Nicoletti said the changes in ad sales in January would “empower our teams, with a focus on agility to accelerate decision-making, and keeping leadership close to the work by simplifying our organizational structure.”
Ad sales is an important part of Google’s business, and GCS is central to it. Nicoletti said that as part of the upcoming changes, managers across select teams would become “heads of business” and report directly to directors with no management layer in between. This would include removing a layer within its mid-market sales group — a role known as account strategy management — that previously stood between account executives and managers, and the heads of business.
Nicolette also mentioned that Google would reopen account executive roles “to continue investing in capacity for deep customer partnerships.” “One of the reasons that we’ve been so successful is that we’re outstanding at driving momentum through continuous change,” Nicoletti wrote. “This will be no different.”
Google is not the only company getting rid of management layers. Other companies including Intel, Amazon, and Microsoft have also taken similar steps for efficiency.
While GCS is the only division mentioned in the memo, it is not the only team in ad sales. It also has teams working on Large Customer Sales (LCS), which focus on the biggest and most complex customers.