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Google cut 10% of managerial roles in push for efficiency: Report

The layoff saga started back in 2022 when Google's CEO, Sundar Pichai, announced a plan to make the company 20% more efficient.

Updated on: Dec 21, 2024, 15:15:52 IST
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Google CEO Sundar Pichai recently revealed in an all-hands meeting that the company has slashed 10% of its managerial roles, including directors and VPs, according to the Business Insider. The company is trimming its workforce, sharpening focus amid rising AI competition from rivals like OpenAI, threatening its search dominance. (Also read: How Google Maps helped solve, catch the murder in a year-old case)

Google slashes management roles

Alphabet CEO Sundar Pichai speaks at a Google I/O event in Mountain View, California. (AP)
Alphabet CEO Sundar Pichai speaks at a Google I/O event in Mountain View, California. (AP)

This isn't the first time the tech giant has done this. In fact, they've been working on streamlining their operations for the past two years.

There are three specific roles which saw the 10% cut this year. 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.

Also read: Assassination threat to Elon Musk? Social media users flag ‘he’s a CEO' warning

The layoff saga started back in 2022 when Google's CEO, Sundar Pichai, announced a plan to make the company 20% more efficient. Last year, the restructuring resulted in a huge layoff affecting more than 12,000 employees.

Pichai focuses on ‘Googleyness’

However, Pichai has simplified the concept, focusing on key principles like mission-driven work, innovation, and teamwork. He spoke about the importance of prioritising the company's mission, creating helpful products, taking bold risks, maintaining a scrappy attitude, and fostering a collaborative work environment.

Google's recent organisational restructuring is part of a larger trend in the tech industry trying to adapt to a rapidly growing AI-driven scenario. Companies like Amazon have also been streamlining their operations by reducing middle management and empowering individual contributors.

 
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