In September 2020, Waze, a popular navigation and mapping service owned by Google, announced the layoff of 5 percent of its global workforce, affecting about 30 employees out of 555. These layoffs were prompted by the coronavirus pandemic, which caused a significant decline in daily users and advertising revenue. This article explores the reasons for these layoffs, their impact on the company, and the potential future consequences for the industry.
Waze's layoffs were prompted by economic pressures and shifts in industry demands due to the COVID-19 pandemic. The decrease in daily use of the navigation service led to a significant drop in advertising revenue. The pandemic also resulted in a substantial decrease in kilometers driven and the use of Waze's standalone carpooling service.
In response, Waze undertook internal restructurings, closing offices in countries like Malaysia, Singapore, Colombia, Chile, and Argentina, and refocusing its efforts on growth markets such as the US, the UK, France, Brazil, Canada, Italy, and Mexico. The company's CEO, Noam Bardin, communicated a strategy to employees to "rethink priorities" and focus on product improvements and technical infrastructure, along with refocusing sales and marketing efforts in key markets.
Waze is among several technology and transportation companies, including Uber, Lyft, and others, that have faced layoffs during the pandemic, reflecting broader industry and economic trends.
Following the layoffs, Waze implemented cost-cutting measures and adapted to changing market conditions. The company streamlined its operations, including closing offices in Asia and Latin America, and concentrated its marketing and sales efforts on high-value countries. Additionally, Waze reduced the team size for its standalone carpooling service, Waze Carpool, to align more closely with current business needs and promote sustained growth.
The transportation industry has been significantly impacted by the COVID-19 pandemic, with reduced demand and changing consumer behaviors. Waze's strategic response, including layoffs and office closures, may serve as a precursor to shifts within the industry as companies adjust to new market conditions. The actions taken by Waze and similar strategies by competitors like Uber and Lyft indicate a broader pattern of adaptation that could influence the sector's future.
The layoffs at Waze were a consequence of diminished demand and reduced advertising revenue due to the pandemic. These changes necessitated a strategic refocus towards high-value markets and a streamlined approach to operations. This strategy, shared by other companies in the tech-driven transportation sector, may herald significant shifts in the industry as firms adapt to new realities and redefine their business models to thrive in a changing landscape.
