In a significant move to streamline its operations, Google has cut its top management roles by 10%, Chief Executive Officer (CEO) Sundar Pichai revealed during an all-hands meeting on Wednesday, December 18, according to a report by Business Today. The decision, which impacts managerial, director-level, and vice-president positions, is part of a broader, years-long effort to simplify the company and enhance productivity.
The restructuring aligns with Google's evolving business priorities. A spokesperson clarified to Business Insider that some affected roles have been transitioned into non-managerial positions, while others were eliminated. This adjustment builds on Google's efficiency strategy first outlined in September 2022, when Pichai set a goal to boost efficiency by 20%.
The latest cuts follow the company's January 2023 layoffs, which saw 12,000 employees — about 6% of its workforce — laid off in one of the most significant workforce reductions in Google's history.
This efficiency drive coincides with intensifying competition in artificial intelligence (AI), where rivals like OpenAI challenge Google's dominance in areas such as search. To stay ahead, Google has accelerated its AI initiatives, introducing generative AI features across its core businesses and launching tools like the Gemini model series and an AI video generator that reportedly outperformed OpenAI's equivalent in testing.
During the meeting, Pichai also touched on redefining "Googleyness," a term describing the company’s culture and values. “It’s time to update what Googleyness means for today’s Google,” he told employees, signalling a cultural shift to align with the company's evolving challenges.