
In a move to streamline operations, Google has announced a 10% reduction in its managerial positions, affecting roles such as managers, directors, and vice presidents. The news was shared by CEO Sundar Pichai during an all-hands meeting with employees on Wednesday. This is part of the company’s broader effort to increase efficiency, with plans to double its efficiency improvements over time. Earlier also, a lot of companies have removed staff at Managerial Posts to improve efficiency. Companies expect that removing layers improves efficiency as it makes employees more responsible.
A Google spokesperson confirmed to Business Insider that some of the employees impacted by these cuts would be reassigned to individual contributor roles, while others faced role eliminations. The company has been undergoing a long-term efficiency drive that started in September 2022. This initiative is aimed at simplifying the company and making it more agile in the face of growing competition, particularly in the rapidly evolving field of Artificial Intelligence (AI).
The layoffs come amid fierce competition from AI companies like OpenAI, whose products are seen as potential threats to Google’s core business—Google Search, which accounted for more than 57% of the company’s revenue last year. In response, Google has been incorporating generative AI features into its products, including the recent launch of its most advanced AI model, Gemini 2.0. Pichai described this new model as ushering in a “new agentic era” of AI that can understand and make decisions about the world.
The launch of Gemini 2.0 and other AI advancements helped boost Google’s stock by more than 4% on Wall Street, following a 3.5% increase the day before after the release of a breakthrough quantum chip. These developments reflect Google’s ongoing efforts to stay competitive in the AI race.
This marks the fourth round of layoffs at Google this year. Earlier in 2024, the company eliminated positions in its global advertising team and cloud unit. The company’s efficiency drive began in 2022, following a period of rapid growth. By January 2023, Google had eliminated over 12,000 roles, or 6.4% of its global workforce, as part of a company-wide audit to identify areas for cost-cutting.
In a letter to employees during the 2023 layoffs, Pichai took full responsibility for the decisions but emphasized that they were necessary to address the challenges of rapid growth. He admitted that the company could have handled the layoffs better but stressed that immediate action was needed to avoid worsening the situation.
In the same meeting, Pichai also discussed the need to redefine Google’s corporate culture, particularly the term “Googleyness.” This term, which has evolved over time, describes the qualities that Google looks for in potential hires. Pichai indicated that the definition of “Googleyness” would be updated to reflect the changing needs of the company.
As Google continues its transformation, the company remains focused on increasing efficiency and adapting to the competitive challenges posed by AI and other emerging technologies.