Alphabet Inc.’s Google has removed 35% of its managers who oversee teams of fewer than three employees during the past 12 months, vice president of people analytics and performance Brian Welle told workers at an all-hands meeting last week, according to audio reviewed by CNBC. Welle said the cuts leave the company with “35% fewer managers, with fewer direct reports” than a year earlier, part of an effort to trim layers of bureaucracy and accelerate decision-making. The shake-up targets managers who have stayed on as individual contributors and coincides with a broader cost-control campaign that began after Google eliminated about 6% of its workforce in 2023. Executives said the company has also offered a Voluntary Exit Program in 10 product areas—including search, marketing and hardware—with early acceptance rates of 3% to 5%. Chief Executive Officer Sundar Pichai told staff the measures are designed to keep headcount growth in check while the company scales, adding that employees favored buyouts over blanket layoffs.
✂️Google cut 35% of managers running very small teams to reduce layers and speed up work. Also rolled out a Voluntary Exit Program across 10 product areas with 3% to 5% acceptance so far. The cuts target managers with fewer than 3 direct reports, and many of those managers https://t.co/ZRJkpUliok
In staff all-hands meeting, Google highlights how many managers it has cut to be more efficient https://t.co/8n0Fd2Nkip
Google Has Eliminated 35% of Managers Overseeing Small Teams in Past Year, Exec Says https://t.co/qPEBPRnpXf