Google has decided to merge Maps and Waze to cut cost

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The two teams working on maps under Alphabet Inc. are being combined as things continue to get worse in the economy. The cost of operating both companies was becoming an issue for the company to manage.

Google maps will be working with the 500 or so employees at Waze who develop the mapping. All this was said to have started on Friday according to Google's spokeswoman.

The CEO of Waze Neha Parikh will also be stepping down as the merging continues. Nobody was laid off for these proceedings but there needs to be restructuring according to the google spokeswoman.

The expectation is that there will be reduced work in processes that are done on both mapping products. Google recognizes that Waze has a fan base that is also devoted to designing the app as the map is built by volunteers.

Sundar Pichai the Google CEO has hopes of making both companies more effective as the advertisement has declined and he feels that the companies will achieve 20% more with the ongoing merger.

Just last month the activist hedge fund TCI Fund management send a letter to Alphabet Inc. saying its number of employees was too high and it needed to cut down on production.

In 2013 when google decided to purchase Waze for $1.1 billion all eyes were on them and they were criticized for this acquisition. Part of those who felt that something was wrong with this purchase was the Federal Trade Commission but they eventually chose to let it go.

Waze has a customer base of 151 million people who also crowd-source the map and this has made room for a beautiful source of advertising since its inception.

Google and Waze have been looked at as competition even after Waze was acquired but google has been able to add some of the features of Waze to its mapping product.

What do you think about this merger will it help? Do you know any other companies this is currently working for? Will these two go back to being the competitor they initially were? Do you think there will be layoffs coming soon?

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