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Google cuts over one-third of small-team managers in major efficiency push
CEO Sundar Pichai reportedly said that the company must scale without adding headcount; buyouts offered across 10 product areas, with up to 5% employees opting in
Alphabet CFO Anat Ashkenazi previously signaled that the company’s cost-cutting measures would go “a little further,” reinforcing Google’s broader strategy of driving efficiencies across the organization.
Google has eliminated more than a third of its managers overseeing small teams as part of its drive to streamline operations and reduce bureaucracy, according to a CNBC report.
Brian Welle, Google’s vice president of people analytics and performance, told employees at an all-hands meeting last week that the company now has 35% fewer managers compared to a year ago, reflecting efforts to restructure leadership roles and increase efficiency. Many managers with fewer than three direct reports have transitioned into individual contributor roles, according to a person familiar with the matter.
CEO Sundar Pichai emphasized that the company needs “to be more efficient as we scale up so we don’t solve everything with headcount.” The report mentioned that Google has already cut about 6% of its workforce in 2023 and has since slowed hiring while pushing employees to “do more with less.”
The company has also expanded buyout offers through its Voluntary Exit Program (VEP) across 10 product areas, including search, marketing, hardware and people operations.
Fiona Cicconi, Google’s chief people officer, said between 3% and 5% of employees in those divisions have opted for the program this year. Pichai described buyouts as a more employee-friendly alternative to blanket layoffs, adding that the approach “gives people agency.”
Alphabet CFO Anat Ashkenazi previously signaled that the company’s cost-cutting measures would go “a little further,” reinforcing Google’s broader strategy of driving efficiencies across the organization.
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