- Google’s CEO said it had cut managers, directors, and VPs by 10% as part of its efficiency drive.
- The company has been boosting efficiency by reducing layers and reorganizing teams.
- Google has been facing down threats from OpenAI and other AI rivals.
Google had cut the number of top management roles by 10% in its push for efficiency, CEO Sundar Pichai told employees in an all-hands meeting on Wednesday.
Pichai said that Google had made changes over the past couple of years to simplify the company and be more efficient, according to two people who heard the remarks, who asked to remain anonymous because they’re not authorized to speak to the press.
Pichai said this had included a 10% reduction in managers, directors, and vice presidents, one source said.
A Google spokesperson said that some of the roles in that 10% figure were transitioned to individual contributor roles and that some were role eliminations.
The company has been on an efficiency drive for more than two years. In September 2022, Pichai said he wanted Google to be 20% more efficient, and the following January, the company had a historic round of layoffs that saw 12,000 roles eliminated.
The efficiency push has coincided with AI rivals such as OpenAI unleashing new products that threaten Google’s search business.
Google has responded by injecting generative AI features into its core businesses and launching a flurry of new AI features, such as a new AI video generator beating OpenAI’s in early testing and a new set of Gemini models, including a “reasoning” model that shows its thought process.
In Wednesday’s all-hands meeting, Pichai also clarified the meaning of the word “Googleyness,” telling staff that it needed updating for a modern Google.
Are you a current or former Google employee with something to share? You can reach the reporter Hugh Langley via the encrypted messaging app Signal (+1-628-228-1836) or email (hlangley@businessinsider.com).
