Tech Titan Trims Ranks: Google Slashes Small-Team Managers in Efficiency Push

In a move aimed at streamlining its operations, Google has significantly reduced its managerial ranks, eliminating more than a third of managers who oversee small teams over the past year. This initiative, part of a broader push for efficiency, was confirmed by Brian Welle, the company’s vice president of people analytics and performance. At a recent all-hands meeting, Welle stated that Google now has "more than 10% fewer managers, with fewer direct reports" compared to the previous year.

The reduction, which affects managers overseeing less than three people, is part of a larger strategy to curb bureaucracy and ensure the company can "be more efficient as we scale up," as articulated by CEO Sundar Pichai. This aligns with the company's goal for its entire leadership population—including managers, directors, and VPs—to constitute a smaller percentage of its workforce over time.

This recent action follows a series of workforce adjustments at the tech giant, which included a nearly 6% reduction in its workforce in 2023 and subsequent cuts across various divisions. To further manage expenses, Google has also slowed hiring and offered a Voluntary Exit Program (VEP) to employees since the beginning of the year. According to Chief People Officer Fiona Cicconi, between 3% and 5% of employees in eligible U.S.-based teams have accepted the buyouts. The company considers the program "quite successful" and intends to continue it.

The VEP provides a voluntary alternative for employees who may want to take a career break or address family needs. CEO Sundar Pichai expressed his support for the program, stating that it "gives people agency" and has been a positive development for those who chose to participate.