Google has slashed more than a third of its managers responsible for small teams, signaling a significant shift in the company’s organizational structure.
Audio from a recent all-hands meeting, obtained by CNBC, shows Google is actively restructuring to simplify decision-making and reduce layers of management. The move comes as the company balances the need to control expenses with its ambitious investments in artificial intelligence, highlighting a push for leaner operations amid growing financial and competitive pressures.
Brian Welle, Google’s vice president of people analytics and performance, reportedly informed employees in the meeting that the company now has “35 percent fewer managers, with fewer direct reports” compared to the same period last year.
The cuts have largely targeted managers supervising teams of fewer than three, with many transitioning back into individual contributor roles rather than leaving the company. This shift underscores Google’s broader effort to streamline its management structure while maintaining talent within the organization. Google’s decision to cut managerial positions comes on the heels of a series of layoffs, voluntary buyouts, and organizational reshuffles the company has pursued since 2023.
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Welle said the reduction in managerial roles aims to create a leaner organization, keeping leadership positions as a smaller share of the workforce. He emphasized that the changes are designed to remove internal bottlenecks and accelerate decision-making, not just to trim staff numbers. Google CEO Sundar Pichai also emphasized on the need to “be more efficient as we scale up so we don’t solve everything with headcount,” as per the report.
Google’s latest management shake-up comes amid ongoing workforce reductions across Alphabet over the last two years. In January 2023, the company executed its largest-ever layoff, cutting around 12,000 positions, about 6 percent of its global staff. Since that move, Google has continued to scale back teams in multiple divisions as part of broader restructuring efforts.
In February, Google revealed layoffs within its Cloud division, followed by cuts in April across the Platforms and Devices unit, which covers Android, Pixel, and Chrome teams. By May, roughly 200 employees in the Global Business Unit were let go. At the same time, the company has slowed hiring and encouraged employees to “do more with less,” reflecting ongoing cost-cutting measures.
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The company has reportedly rolled out voluntary exit programs (VEPs) across several product areas, including Search, Marketing, Hardware, and People Operations. In the same meeting, Chief People Officer Fiona Cicconi noted that between 3 and 5 percent of employees in these groups have opted for the program. Many cited reasons such as taking a career break, pursuing personal time, or caring for family members. Pichai told employees that the voluntary program was developed in response to feedback indicating that staff favored buyouts over broad layoffs. “It gives people agency, and I’m glad to see it’s worked out well,” Pichai stated.
While the reduction in managerial roles and targeted layoffs have reshaped parts of the workforce, initiatives like voluntary exit programs show the company is trying to balance efficiency with flexibility for employees. The series of changes underscores how even tech giants are adapting to evolving business demands and economic realities.
1 Comment
The headline is misleading at best. 35% of managers is not equal to 35% of workforce. Also, Brian says “ 35 percent fewer managers, with fewer direct reports‘“. This does not say that these managers were asked to leave the company. Stop spreading misinformation to benefit your personal goals.