Google reportedly cutting budget in Smart TV biz; looking to bolster YouTube team

Google (NASDAQ:GOOG) (NASDAQ:GOOGL) has reduced the budget for the Google TV and Android TV team by 10%, according to a report by The Information on Monday, citing people familiar with the matter. The group had a budget of less than $500M, according to the report.

As part of the budget cuts, about as much as a quarter of the team’s overall headcount of roughly 300 could have been impacted, sources told The Info.

Although the same team is expanding in other countries, including India, and is aiming to get back to around 300 or more people by hiring in other areas, the report said.

The report said Google is centering its TV business around YouTube, as the platform became the top streaming service in the U.S. It contemplated leadership changes and sought to focus on growing revenue from the platform’s various subscription services for cable-like TV and music.

The report said earlier this year, YouTube sought to recruit a replacement for Lori Conkling, its global head of TV, film, and sports partnerships, who left the company for Netflix (NFLX).

The company leaders were discussing hiring or elevating an executive who could eventually serve as a successor to Mary Ellen Coe, the platform’s chief business officer, a source familiar with YouTube’s plans told The Info. This executive would likely be in charge of all of YouTube’s paid subscription products.

Christian Oestlien, vice president of product management for connected TV and infrastructure at YouTube, is a strong internal candidate, the person said.