Google has cut 10% of its managerial staff, which includes managers, directors, and vice presidents, as part of a major restructuring exercise to improve efficiency and streamline operations. The decision was announced by CEO Sundar Pichai on December 18 in a company-wide meeting.
This restructuring is the latest step in a two-year campaign to optimize the organization’s workforce and decision-making processes. According to a Google spokesperson, some management roles were completely eliminated, while others were shifted into individual contributor positions.
Similar layoff patterns to Amazon? That company’s CEO, Andy Jassy, recently announced moves to reduce layers of middle management. It aims at removing what both call “unnecessary bureaucracy,” which gets in the way of innovation and delays decision-making.
The company aims to remove “meeting for meetings” and raise individual contributors by 15% as of early 2025. The latest Google cuts fall in with the broader trend of focus on agility and innovation the tech industry has seen recently.
What is triggering the layoffs?
Google is under pressure from competitors in the artificial intelligence (AI) sector, particularly OpenAI, whose advancements have challenged Google’s dominance in core areas like search and AI products. With AI transforming the tech landscape, Google’s leadership sees restructuring as vital to staying competitive. Two Years of Change
The efficiency drive started in September 2022, when Pichai set a target to make the company 20% more efficient. This campaign has already brought about massive organizational changes, such as Google’s biggest layoff in January 2023, which affected approximately 12,000 employees.
The latest reduction in managerial roles shows Google is still on its way to transform its workforce and increase productivity.
The CEO mentioned some other important issues, including organizational changes and changes to Google’s corporate culture, which Pichai is adapting during the meeting. The cultural values that have defined “Googleyness” throughout the company’s history are changing to meet modern challenges.
Sundar Pichai stated that the new “Googleyness” focuses on three factors:
- Mission-driven work: prioritizing projects in line with Google’s purpose.
- Innovation: Taking bold risks to maintain the company’s position at the forefront of technology.
- Teamwork and collaboration: encouraging a more cohesive and effective work environment.
- Scrappiness: A leaner, more resourceful approach to problem-solving.
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