Google restructures ad sales unit, cuts middle management amid AI overhaul

Search engine giant Google is reportedly restructuring its advertising sales unit in the US, cutting an entire layer of middle management from the Google Customer Solutions (GCS) division, which caters to midsize advertisers, Business Insider reported. The affected employees will reportedly be transitioned into other roles instead of being laid off.

The move is part of Google’s broader effort to streamline operations and accelerate decision-making amid the company’s AI-driven transformation. Over the past year, Google has reduced the number of managers overseeing small teams by 35%. Under the latest restructuring, several managerial roles are being redefined into “Heads of Business” positions, who will now report directly to directors — effectively removing intermediary management layers.

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Tech majors such as Intel, Amazon, and Microsoft have undertaken similar organizational flattening exercises in recent months to boost agility and reduce bureaucracy.

Google’s core advertising business has been experiencing slower growth as competition intensifies from AI-driven ad platforms. Meanwhile, Meta has rolled out Andromeda, its rebuilt AI-powered ad delivery engine, globally — a move that has sent shockwaves through the advertising ecosystem.

The AI-led system, which scans millions of ad options per second to identify the best match for each user, has disrupted traditional campaign workflows, data transparency, and performance predictability — signaling a major shift in how digital ads are delivered and optimized.

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