Google cuts 35% managerial roles as CEO Sundar Pichai aims for a leaner model

Google has reduced more than a third of its managers overseeing small teams, in its latest effort to streamline operations and reduce bureaucracy while continuing to invest heavily in artificial intelligence.

The move was disclosed to employees during a recent all-hands meeting, according to a report by CNBC. Brian Welle, Google’s vice president of people analytics and performance, told staff that the company now has “35% fewer managers, with fewer direct reports” compared with the same period last year. The reduction has mainly affected managers overseeing fewer than three employees, many of whom have transitioned back into individual contributor roles rather than leaving the company.

Welle said the aim was to ensure leadership positions make up a smaller proportion of Google’s workforce over time, allowing the organisation to operate with greater agility. “When we look across our entire leadership population, that’s managers, directors and VPs, we want them to be a smaller percentage of our overall workforce,” he said.

Chief executive Sundar Pichai also addressed staff during the meeting, stressing the importance of a leaner management model. “We have to be more efficient as we scale up so we don’t solve everything with headcount,” he said, highlighting the need to support innovation without unnecessary layers of hierarchy.

The managerial cuts come against the backdrop of repeated job reductions across Alphabet over the past two years. Google carried out its largest-ever layoff in January 2023, cutting around 12,000 roles, or 6% of its global workforce. Since then, the company has continued to restructure teams across divisions, with further reductions reported in Google Cloud, the Platforms and Devices unit, and the Global Business Organisation throughout 2025.

To soften the impact of ongoing cutbacks, Google has introduced voluntary exit programmes (VEPs) in several product areas, including search, marketing, hardware, and people operations. Chief people officer Fiona Cicconi told employees that between 3% and 5% of staff in these groups have opted for buyouts. Many cited wanting a career break or time to care for family members.

Pichai said the scheme was introduced after feedback from employees who preferred buyouts over broad-based layoffs. “It gives people agency, and I’m glad to see it’s worked out well,” he said.