Google has announced a significant reduction in its managerial workforce, slashing 10% of positions, including directors and vice-presidents. Chief Executive Sundar Pichai confirmed the decision during an all-hands meeting. Pichai reportedly stated that Google has implemented changes in recent years aimed at streamlining operations and enhancing efficiency. The drive for efficiency comes as AI competitors like OpenAI launch new products that pose a challenge to Google’s search business, according to a report by Business Insider.
While some managers were reassigned to individual contributor roles, many positions were eliminated altogether.
Google’s cost-cutting initiative began in 2022 when Pichai set a goal to improve the company’s efficiency by 20%. Last year’s restructuring led to the termination of over 12,000 employees, marking a significant downsizing for one of the tech industry’s largest players.
In May 2024, Google cut 200 jobs from its “core team,” relocating some roles overseas as part of the broader cost-reduction strategy. The “core team” is instrumental in building the technical foundation for Google’s flagship products, focusing on user safety and global IT infrastructure. Almost 50 engineering positions were eliminated in California, according to CNBC.
The ongoing changes reflect broader trends in the tech industry. Rapid advancements in AI and mounting economic pressures are prompting tech giants to eliminate middle management layers to boost efficiency and empower individual contributors. Layoffs across the sector have reached alarming levels. Data from Layoffs.fyi reveals that in the first half of 2024 alone, over 98,000 employees were laid off by 333 tech companies. In May, nearly 10,000 workers lost their jobs across 39 companies.
Other tech giants restructure
Google’s restructuring mirrors similar moves by other industry leaders. Microsoft laid off more than 1,000 employees across divisions, including Azure cloud and gaming, following its acquisition of Activision Blizzard. The gaming unit alone faced 1,900 job cuts. Amazon also downsized its workforce across several units, including Audible, Prime Video and Twitch, with the latter losing 35% of its staff, approximately 500 employees.
