Google has significantly restructured its workforce by eliminating more than a third of its managers overseeing small teams, as part of an ongoing effort to reduce bureaucracy and improve efficiency while channeling resources into artificial intelligence. According to audio from a recent all-hands meeting reviewed by CNBC, the move reflects Google’s push to control costs and build a leaner organisation after two years of layoffs and restructuring.
Brian Welle, Google’s vice president of people analytics and performance, told employees that the company now has “35 per cent fewer managers, with fewer direct reports” compared to the same period last year. The biggest impact has been on managers supervising fewer than three employees, many of whom have been reassigned to individual contributor roles instead of leaving the company.
Welle explained that the decision is aimed at making leadership a smaller share of the overall workforce, removing layers of management that can slow decisions. He said the priority is to simplify processes and accelerate execution, not simply to cut staff numbers.
At the same meeting, CEO Sundar Pichai underlined the need to maintain agility as Google expands its AI ambitions. “We have to be more efficient as we scale up so we don’t solve everything with headcount,” he told employees, stressing that the company’s structure must foster innovation without unnecessary managerial overhead.
The changes come amid broader restructuring across Alphabet. Google has repeatedly reduced its workforce since its largest-ever layoff in January 2023, which cut around 12,000 roles, or 6% of global staff. In 2025 alone, job cuts have hit multiple divisions: Google Cloud in February, the Platforms and Devices unit—including Android, Pixel, and Chrome—in April, and the Global Business Unit in May, where roughly 200 employees were affected. Hiring has also slowed, with management encouraging staff to “do more with less.”
To ease the impact, Google has rolled out voluntary exit programmes (VEPs) across search, hardware, marketing, and people operations. Chief People Officer Fiona Cicconi revealed that between 3% and 5% of staff in those areas opted for buyouts, often citing personal reasons like taking career breaks or caring for family members. Pichai noted the scheme was introduced after employee feedback. “It gives people agency, and I’m glad to see it’s worked out well,” he said.
