This equates to about 30 people out of its 555-strong global workforce. It did not mention how many of its Singapore staff are affected.
All affected employees will receive a severance package that includes career transition opportunities within Google, outplacement services, financial help and eligibility for year-end bonuses, and healthcare benefits.
Waze said the retrenchment was partly due to the Covid-19 pandemic, which saw its users driving less or stopped driving altogether, resulting in them using Waze less for their daily navigation needs.
Fewer eyeballs on the app resulted in decreased advertising revenue for the company.
Acquired by Google in 2013 for a reported US$1.1 billion (S$1.4 billion), Waze has seen a plunge in both monthly active users and driven kilometers, the metric by which the company measures how far its customers drive while using Waze.
Global Weekly Driven Distance Decreased By 70%
In April, Waze laid out in a blog post that its customers drove 60 per cent fewer miles in March, when lockdowns started going into effect, as compared to February.
Those figures worsened as the pandemic stretched on. Waze says that at one point during the lockdown, global weekly driven kilometers were down 70 per cent.
Since June, Waze has begun to see a recovery of driving as people returned to work in countries where restrictions have been lifted. Globally, the company says it’s back to pre-COVID driving levels.
“This has forced us to rethink priorities and we have decided to focus our resources on product improvements for our users, accelerate our investments in technical infrastructure, and refocus our sales and marketing efforts on a small number of high-value countries,” said CEO Noam.
Closing Its S’pore And APAC Offices
His note added that Waze’s advertising sales team will “pare back and focus on the key markets that drive 93 per cent of revenue and carry 95 per cent of kilometres driven we sell in”.
This means the company will close its sales offices in the Asia-Pacific — in Singapore, Indonesia, the Philippines and Malaysia — as well as in its smaller Latin America markets of Colombia, Argentina and Chile.
It will continue servicing these countries through increased investments in Waze Local Starter — a self-service advertising solution that businesses can use to promote their physical stores via a pin on the Waze map.
Previously, ride-hailing apps Grab and Gojek had also cut jobs to cope with the impact of the Covid-19 outbreak as people stay home and avoid going outdoors, leading to a drop in demand for transportation services.
Before Covid-19, only 11 bus services, or three per cent of all bus services here, were profitable, according to Minister Ong.
Pandemic-related layoffs continue to happen, with the recent case of Singapore Airlines (SIA) Group’s retrenchment exercise — cutting about 4,300 positions across its three airlines — as Covid-19 batters the aviation industry.
Featured Image Credit: Bloomberg