Google reportedly reduced the number of managers supervising small teams by 35% last year.
According to the U.S. economic media outlet CNBC on the 27th (local time), Google's vice president of workforce analytics and performance, Brian Welle, noted during a company-wide meeting last week that, compared to a year ago, "the number of managers has been reduced by 35%, and direct reports have also decreased." An anonymous source indicated that the 35% reduction Welle mentioned pertains to managers overseeing three or fewer employees, many of whom remain employed at the company.
This is seen as an indication that major technology companies (big tech) continue to pursue restructuring efforts to enhance organizational efficiency despite ongoing growth. Welle stated that the aim is to reduce bureaucracy and operate the company more effectively, gradually decreasing the ratio of managerial staff, such as managers, directors, and vice presidents, within the overall workforce. Sundar Pichai, Google's chief executive officer (CEO), also remarked during the meeting that "as the size grows, the company must become more efficient," adding, "that way, we don't resolve everything with the number of employees."
Google reduced approximately 6% of its total workforce in 2023 and has since implemented further layoffs in various institutional sectors. In June, voluntary retirement was offered in ten product sectors among U.S. employees, including search, marketing, hardware, and human resources. During this meeting, Fiona Cicconi, the chief people officer (CPO), stated that the voluntary retirement program was "quite successful," noting that 3% to 5% of staff in each institutional sector accepted it. Cicconi explained that these individuals were primarily those seeking a temporary break from work or wishing to care for family.