Google revamps ad sales operations amid efficiency push and rising AI competition

According to internal reports, Google will eliminate a management tier in its GCS division to speed up decisions, merge overlapping roles, and simplify reporting structures as part of its broader operational efficiency drive amid rising competition

In a fresh bid to improve agility and reduce bureaucracy, Google is reorganising its U.S. advertising sales division, reshaping how teams operate and report internally. The move, expected to take effect in January 2026, focuses on restructuring the Google Customer Solutions (GCS) unit, which handles mid-sized advertisers and contributes significantly to the company’s ad revenue.

Revised reporting structure for ad teams

According to an internal memo cited by reports, the reorganisation will remove one tier of supervisory roles within the GCS division, enabling faster decision-making and more direct communication between business heads and team leaders. Employees currently in those roles are expected to be reassigned to other positions instead of being laid off.

The new structure will also merge overlapping responsibilities in the GCS mid-market group, where the account strategy management role will be phased out. Instead, team leads will now report directly to division directors under a more streamlined model.

Part of a larger efficiency drive

This initiative builds on Google’s broader effort to simplify internal operations amid a competitive and evolving digital advertising landscape. Executives at a recent all-hands meeting said the company had already reduced managerial positions overseeing smaller teams by roughly 35% in the past year.

The restructuring reflects a wider industry movement among technology giants such as Amazon, Intel, and Microsoft, who are redesigning internal hierarchies to speed up decision-making and reduce operational overhead.

A Google spokesperson confirmed the organisational updates, saying the company continues to “optimise how teams operate to serve advertisers more effectively.”

The changes come as Google navigates intensifying competition from AI-driven ad platforms and a cooling ad market, prompting the company to balance efficiency with long-term growth.