Google has eliminated more than one-third of its managers overseeing small teams, part of the company’s sweeping effort to streamline operations and reduce bureaucracy.
“Right now, we have 35% fewer managers, with fewer direct reports than at this time a year ago,” said Brian Welle, Google’s vice president of people analytics and performance, during an all-hands meeting last week, according to audio obtained by CNBC. “So a lot of fast progress there.”
The cuts affect managers who oversaw fewer than three employees, according to a person familiar with the matter. Many of those affected have remained at the company as individual contributors. Executives said the restructuring is aimed at speeding up decision-making and ensuring managers, directors, and vice presidents make up a smaller share of Google’s total workforce over time.
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Job security questions linger
At the meeting, employees pressed Welle and other executives on issues ranging from job stability to workplace culture, following several rounds of layoffs, buyouts, and reorganization efforts over the past year.
Google CEO Sundar Pichai acknowledged the concerns but noted the need for efficiency. “We need to be more efficient as we scale up so we don’t solve everything with headcount,” he said.
Alphabet, Google’s parent company, laid off about 6% of its global workforce in 2023 and has since made targeted cuts across multiple divisions. Chief financial officer Anat Ashkenazi, who joined last year, said in October she planned to push cost-cutting measures “a little further.”
Buyouts gain traction
As part of the restructuring, Google has offered “Voluntary Exit Program” (VEP) packages in 10 product areas, including search, marketing, hardware, and people operations. Between 3% and 5% of employees in those units have accepted the offers, executives said.
“This has been actually quite successful,” said chief people officer Fiona Cicconi, noting that many employees who took buyouts were seeking career breaks or time to care for family members.
Pichai defended the move, saying the buyouts reflected employee feedback. “It gives people agency, and I’m glad to see it’s worked out well,” he said.
Sabbatical debate
The town hall also touched on employee benefits. Workers asked whether Google might adopt a sabbatical policy similar to Meta’s “recharge” program, which grants a month off after five years at the company.
Alexandra Maddison, Google’s senior director of benefits, dismissed the idea, saying the company’s current vacation and leave policies already provide sufficient time for rest.
“We’re very confident that our current offering is competitive,” she said.
Cicconi added that, unlike Meta, Google offers the voluntary buyout program. Pichai quipped in response, “Should we incorporate all policies of Meta while we’re at it? Or should we only pick and choose the few policies we like? Maybe I should try running the company with all of Meta’s policies. No, probably not.”
Balancing morale and profits
The restructuring comes at a time when Alphabet’s stock has continued to climb, rising 10% this year after gains of 36% in 2024 and 58% in 2023. Yet employees say morale has been strained, as the company posts record earnings while continuing to cut jobs.
Executives maintain that the changes are necessary to ensure Google remains agile in a highly competitive tech industry, even as the company grapples with how to balance efficiency with employee trust.