Waze has maintained complete autonomy since its acquisition by Google in 2013, with the team working independently of its parent company, but that is no longer the case. On Friday, December 9, Google integrated the team into its Geo business.
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According to The Wall Street Journal (opens in a new tab), the restructuring is part of Google's larger effort to cut costs by streamlining the business. Waze will continue to operate as a separate app from Google Maps, although it is merged into the Geo organization that oversees Maps, Google Earth and Street View. The merger will lead to less overlap of work on both services.
Waze's 500 employees will also join the Google Geo group, meaning no layoffs are planned for the team. Unfortunately, the reorganization means Waze CEO Neha Parikh will leave her role, a company spokesperson told the WSJ.
Google's parent company, Alphabet, bought Waze in 2013 for about $1 billion. Currently, the platform serves approximately 150 million monthly users. While it has remained independent, some of its popular features have been carried over to Maps, such as the ability to report nearby gas prices, receive traffic slowdown alerts, and add stops to your route.
"Google remains deeply committed to Waze's unique brand, its beloved app, and its thriving community of volunteers and users," Waze PR head Caroline Bourdeau told The Verge (opens in new tab).
In September, Alphabet CEO Sundar Pichai said he wanted to make Google 20% more efficient by becoming leaner and reliant on fewer resources.
Many tech giants have implemented their own cost-cutting measures in response to the uncertain global economic challenges, which have mostly involved mass layoffs. Meta has laid off more than 11,000 employees following a similar move by Twitter. Even Amazon employees in its Devices & Services division were not spared.
While the latest move has raised concerns among Waze employees, Google reiterates that it has no intention of terminating existing employees on the service. "By incorporating the Waze team into Geo's portfolio of real-world mapping products such as Google Maps, Google Earth and Street View, the teams will benefit from further increased technical collaboration," Bourdeau told The Verge.
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