Google Slashes One-Third of Small Team Managers for Efficiency Push Amidst Layoffs and Buyouts

In a significant move towards streamlining its organizational structure, tech giant Google has announced the reduction of more than one-third of its managers overseeing small teams. This decision was made public during an all-hands meeting last week.

Brian Welle, Vice President of People Analytics and Performance, confirmed that currently, there are 35% fewer managers with fewer direct reports compared to a year ago. He emphasized the progress made in this area as a step towards reducing bureaucracy and enhancing operational efficiency.

During the meeting, employees sought clarification on job security, internal barriers, and Google’s culture following recent layoffs, buyouts, and reorganizations. Welle explained that the long-term goal is to have managers, directors, and VPs constitute a smaller percentage of the overall workforce.

The reduction in management positions pertains specifically to those who oversee fewer than three people. Many of these managers have transitioned to individual contributor roles within the company, according to an anonymous source familiar with the matter.

Google CEO Sundar Pichai reiterated the need for the company to become more efficient as it scales up, emphasizing that headcount should not be the solution to all issues.

In 2023, Google reduced its workforce by approximately 6%. Since then, cuts have been implemented across various divisions. Alphabet Finance Chief Anat Ashkenazi, who joined the company last year, expressed her intention to push for cost cuts “a little further” in October. Google has offered buyouts to employees since January and has slowed hiring, encouraging employees to do more with less.

The town hall meeting also discussed the voluntary exit program (VEP) offers presented to employees in U.S.-based search, marketing, hardware, and people operations teams this year. Approximately 3%-5% of employees on these teams have accepted the buyout offers, according to Fiona Cicconi, Google’s Chief People Officer.

The buyouts are seen as a preferred route by employees over blanket layoffs, as they offer more agency and flexibility. Many employees are taking advantage of this opportunity for career breaks or personal reasons such as family care.

The news of the layoffs has been met with some concern due to the simultaneous rise in earnings and stock price. Despite this, Alphabet’s shares have increased by 10% this year, building on a 36% increase in 2024 and a 58% increase the year prior.

During the meeting, employees also inquired about the possibility of implementing a policy similar to Meta’s “recharge,” a month-long sabbatical offered after five years of service. However, Google executives did not commit to introducing paid sabbaticals, stating that their current benefits offering is competitive.

Meta did not respond to a request for comment on this matter. A comparison of the two companies’ benefits was also made during the discussion, with some light-hearted banter between executives about adopting all Meta policies or only selectively incorporating those deemed beneficial.