A sign that the restructuring of the technology giant remains ongoing, Google has eliminated more than a third of management positions responsible for small teams over the past year, as Brian Welle, vice president of People Analysis and Company, revealed an audio of an internal meeting obtained by CNBC This Wednesday (27).
“We currently have 35% fewer managers, with less direct subordinates, than a year ago,” Welle said, according to the recording. “It was quick progress in this regard.”
Movement is part of Google’s effort to reduce bureaucracy and make the operation more efficient. According to a source heard by the US broadcaster, the 35% reduction specifically refers to managers who supervised less than three employees, a profile that the company understands as excessively granular and poorly productive in the new phase.
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During the meeting, executives of the company were questioned by employees about the safety of their jobs, internal obstacles and the impact of the new corporate culture after successive rounds of layoffs, voluntary shutdown programs and reorganization.
“When we look at our entire leadership population-this includes managers, directors and vice-presidents-we want this group to represent a smaller slice of the total workforce over time,” Welle said.
Efficiency without swelling: the Sunda Pichai guideline
CEO Sundar Pichai endorsed the changes and reinforced the central message of leadership: “We need to be more efficient as we grow up, so as not to solve everything simply by increasing the number of employees.”
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Since last year, Google has fired about 6% of its global workforce and has been promoting cuts in different divisions. Alphabet, the company’s controller, has also signaled a new budget discipline. CFO Anat Ashkenazi, which took over in 2024, said in October that it intended to “take the cuts a little further.”
In parallel, the company has been offering voluntary exit programs (VEP) as an alternative to widespread layoffs. According to executives, ten product areas have already implemented this model, including search, marketing, hardware and human resources teams. According to Fiona Cicconi, Google’s global director of people, between 3% and 5% of employees in these areas accepted offers.
“In fact, the program has been quite successful,” Cicconi said at the meeting, adding, “I believe we can continue with him.”
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Pichai also defended the volunteer model, stating that the idea came from the active listening of the workforce itself:
“It’s a program that required a lot of work to be implemented, and I’m pleased to have done it. It gives employees more autonomy – and I’m happy to see that it is working.”
