Google has already cut its management lists beyond count, and executives have certified that the company now has 35% fewer managers than it had a year ago. The relocation is the continuation of an ongoing efficiency initiative to reduce bureaucracy and simplify reporting lines. Brian Welle, the vice president of people analytics and performance, informed the employees at a recent all-hands meeting that the cuts were largely focused on managers who managed teams with very few employees, typically fewer than three.
Most of those staffers still work at the company but have changed to individual contributors instead.
Sundar Pichai Followed With A Joke
The meeting allowed CEO Sundar Pichai to reinforce his drive towards a leaner Google.
“We don’t solve everything with headcount,” he said, emphasising that the point is efficiency, not expansion.
Later, in a lighter mood, when pressed on the question of employee sabbatical programme at Meta, Pichai made a joke: “Maybe I should try running the company with all of Meta’s policies. No, probably not.”
Google’s benefits team denied the introduction of a Meta-style recharge leave, claiming that the company provides competitive packages.
The downsizing of the middle management, which Pichai proposed, involves a smaller proportion of directors and vice presidents in the workforce so that teams can work more quickly.
Buyouts And Cost-Cutting Measures
The managerial reorganisation followed the 2023 layoffs of Google, which impacted an estimated 6% of its staff.
Alphabet CFO Anat Ashkenazi has since clarified that cost-cutting would proceed to a slight extent, with hiring slowing down across divisions.
Another initiative discussed by executives is the Voluntary Exit Program (VEP), a buyout program that spanned 10 product areas, such as search, hardware and marketing.
A range of 3% to 5% of the qualified employees have done so, claiming reasons such as a career break or family time.
According to the chief people officer, Fiona Cicconi, the scheme has been quite successful, and it provides employees with more control than mass layoffs.
