Google has cut these 3 roles to increase efficiency, layoffs hit managers: Report

Google's efficiency drive has been going on for over two years and comes at a time when rivals like OpenAI have released new products threatening its business

Published on: Dec 21, 2024, 11:19:42 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

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Google has cut 10% of the number of top management roles as part of its push for increasing efficiency, Business Insider reported, citing CEO Sundar Pichai as having told employees in a meeting on Wednesday, December 18, 2024.

Google CEO Sundar Pichai testifies during a House Judiciary Committee hearing on Capitol Hill. (Saul Loeb/AFP)

Also Read: Google proposes to loosen default search engine deals with Apple and others in US antitrust case

What are the management roles which have seen a cut by Google?

There are three specific roles which saw the 10% cut. These included managers, directors, and vice presidents, according to the report.

Some of these roles have been changed to non-managerial positions while others were eliminated entirely, the report quoted a Google spokesperson as having said.

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The history of Google layoffs

This efficiency drive has now been going on for more than two years and comes at a time when AI-based rivals such as OpenAI have released new products threatening Google's search engine business.

In September 2022, Pichai said that he wanted Google to be 20% more efficient. In the following January, the company performed a historic layoff which saw the elimination of 12,000 roles.

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Increased rivalry

In response to its AI rivals, Google incorporated generative-AI features into its core businesses and also launched a series of new AI features.

These include a new AI video generator which ended up beating the one of OpenAI in early testing and also a new set of Gemini models, including a "reasoning" model which shows its thought process.

At the same meeting where Pichai announced the managerial job cuts, he also clarified the meaning of the word "Googleyness," telling the employees that it needed updating for a modern Google.

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