In recent years, Google has been continuously streamlining its management team to improve operational efficiency. Senior executives at the company revealed that in the past year, they have cut 35% of small team manager positions, with most managers transitioning to regular employees.
According to CNBC’s report on Wednesday, August 27th, Brian Welle, Vice President of People Analytics and Performance at Google, mentioned in a recent all-staff meeting, “Currently, we have reduced our manager count by 35%, and also reduced the direct reports.” He added, “So, we’ve made rapid progress in this area.”
He emphasized that this move aims to reduce bureaucracy and enhance operational efficiency. He stated, “Looking across our entire leadership, including managers, directors, and vice presidents, over time, we hope that their proportion within our overall workforce will decrease.”
An insider revealed that the 35% reduction in manager positions refers to supervisors managing 3 or fewer subordinates, and after the adjustment period, many of these supervisors can continue to stay in the company as regular employees.
Google CEO Sundar Pichai reiterated during the meeting that the company “needs to increase efficiency as it scales so that we’re not just relying on more people to solve all problems.”
In 2023, Google laid off approximately 6% of its workforce and has since continued to drive adjustments across various departments. In January of this year, the company introduced a “Voluntary Exit Program” (VEP) in 10 departments including search, marketing, hardware, and human resources, with 3% to 5% of employees accepting the program. Google’s Chief People Officer Fiona Cicconi stated that the program “gave employees more autonomy… I’m pleased to see that it has had a positive effect.” She also revealed that most participants wanted to use this opportunity to take a break or care for their families.
Alphabet’s Chief Financial Officer Anat Ashkenazi, who only joined Google’s parent company last year, announced in October her intention to “further” reduce costs.
Since January of this year, Google has slowed down its hiring pace, requiring employees to do more with fewer resources.
Alphabet’s stock performance has been strong in recent years, with a 10% increase this year, 36% increase in 2024, and a 58% increase in 2023.
(This article is based on CNBC’s report)