Google reduces manager and VP roles by 10% in its efficiency push, CEO Sundar Pichai reveals in an internal meeting

During an all-hands meeting on Wednesday, CEO Sundar Pichai told employees that Google has reduced its top management positions by 10% as part of its yearlong push for efficiency, as per reports by Business Insider.

This move comes as Google faces growing competition in the artificial intelligence (AI) space, particularly from competitors like OpenAI.

According to two employees who heard the remarks, Pichai shared that over the past couple of years, Google has introduced measures to simplify the company and enhance efficiency. One source added that as part of this initiative, the company reduced its managers, directors, and vice presidents by 10%, the report added.

The positions eliminated included managerial roles, and some of the impacted jobs were transitioned to individual contributor roles. In some cases, jobs were completely eliminated, the report added.

This workforce reduction is not the first move of its kind at Google. In September 2022, Pichai set an ambitious goal for the company to become 20 percent more efficient. The following year, Google laid off 12,000 employees as part of a larger effort to streamline operations.

The decision to reduce managerial roles is also seen as a response to the increasing pressure from AI companies like OpenAI, which has introduced products that could potentially disrupt Google's core search business.

To stay competitive, Google has aggressively integrated generative AI technologies into its offerings. Notably, the company has launched new AI features, such as a video generator, and unveiled the Gemini model, which includes a "reasoning" feature that showcases the AI’s decision-making process.

In addition to the managerial cuts, Pichai also addressed the concept of “Googleyness” in a meeting on Wednesday.

He emphasized that employees are expected to adapt and contribute to the modernization of Google’s culture to remain relevant in the fast-changing tech landscape.

In May 2024, Google had already made cost-cutting adjustments by eliminating 200 jobs within its core team and relocating some positions overseas.

Among the impacted roles were 50 positions from the engineering team in California, underscoring the company's ongoing restructuring efforts.