Google has slashed 10% of its managerial positions, including directors and vice presidents, marking another phase in its ongoing restructuring process.
Chief Executive Sundar Pichai confirmed the decision in an all-hands meeting on Wednesday, as the company accelerates its efforts to adapt to the rapidly changing tech landscape.
The latest round of layoffs reflects Google's evolving strategy to streamline operations and respond to growing competition, particularly from AI-focused rivals like OpenAI, Business Insider reported.
These companies have posed a serious challenge to Google's once-dominant position in the search engine market.
Pichai set out to make Google 20% more efficient in 2022. He acknowledged that the decision was not easy.
The cuts, which impacted several mid-level managerial roles, are part of a broader initiative that has seen more than 12,000 Google employees laid off in the past year. While some affected managers were reassigned to individual contributor roles, many positions were eliminated.
Google is seeking to reduce the complexity of its management layers to create a more nimble organization that can respond quickly to the fast-evolving demands.
Pichai also introduced a revamped vision of "Googleyness," a term long associated with the company's unique culture and values.
While the concept was once broadly defined, Pichai reimagined it with a sharper focus on mission-driven work, innovation and teamwork.
The new emphasis on "modern Google" is designed to foster bold risk-taking, a scrappy attitude, and improved collaboration—traits that Pichai believes are essential for navigating the company's next phase of growth.
This decision to scale back managerial roles is part of a larger trend sweeping through the tech sector as companies grapple with the challenges posed by rapid advancements in artificial intelligence and ongoing economic pressures.
Tech giants have increasingly looked to restructure their operations, cutting middle management in favor of empowering individual contributors who can directly influence product development and innovation.
The wave of job cuts across the tech industry is staggering. In the first half of 2024, over 150,000 employees from 539 tech companies were let go, according to data from Layoffs.fyi.
Microsoft laid off more than 1,000 employees across various divisions in January.
Amazon trimmed its workforce across multiple units, including Audible, Prime Video and Twitch, which saw a 35% reduction in staff.
