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Go tab in Google Maps.

Todd Haselton | CNBC

Google It is eliminating functionality in the Waze Maps service as it integrates the unit with its mapping products.

In an email to employees Tuesday, Chris Phillips, who oversees a Google Maps division called Geo, said the company is changing its Waze strategy to include Google ads instead of using a separate ad platform. The move will lead to layoffs, according to the email seen by CNBC.

“We’ve decided to shift the monetization of Waze ads to managed by the Global Business Organization (GBO), similar to Google Maps,” Phillips wrote. “Unfortunately, this will result in fewer roles focused on monetizing Waze ads in sales, marketing, operations, and analytics.”

The company hopes to “create a more scalable and improved Waze Ads product,” Phillips wrote, adding that it will “finish the existing Waze Ads product while we focus on creating new Waze ads powered by Google ads.”

The company will notify advertisers and partners of the change on Wednesday, Phillips said, and told employees his team will answer questions and share his plans for the next steps at “our upcoming Waze Town Hall” on July 11.

The email did not say how many jobs would be eliminated, and Google did not immediately respond to a request for comment. The Waze unit has more than 500 employees, according to internal documents seen by CNBC. Google acquired Waze for $1.3 billion in 2013.

After a year of significantly slower revenue growth, Alphabet, Google’s parent company, announced in January that it would lay off 12,000 employees, or 6% of its workforce. The company has also canceled some projects, reduced the size of others, and said it is focused on becoming more efficient.

Since December, it has been Google Strengthen Waze with its own geo module, which oversees the maps. As part of the changeover, the company announced that then-CEO Neha Parikh would be stepping down.

Waze uses crowdsourcing technology that allows it to determine the fastest driving route from one location to another, with up-to-date traffic information. Waze has approximately 140 million active users.

“Decisions like this are very difficult,” Phillips wrote. “Each of these Waze users has contributed to the success and culture of Waze, and I want to express my gratitude and respect for what they have achieved.”

A Google spokesperson did not immediately provide comment.

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