Google Townhall: In a recent townhall meeting, Google executives confirmed that the company has reduced 35% of its managers as part of a larger restructuring strategy. This move is designed to simplify operations, cut bureaucracy, and speed up decision-making, especially during a period of economic challenges.
Brian Welle, Google’s VP of People Analytics and Performance, explained that the restructuring primarily affected managers who led very small teams, sometimes fewer than three employees. Many of these roles are being transitioned back into individual contributor positions, ensuring a leaner and more efficient leadership structure.
Why Google Made This Change
During the townhall, Welle highlighted that Google wants its leadership team — managers, directors, and VPs — to represent a smaller share of the overall workforce in the long term. This reflects the company’s effort to stay agile and reduce unnecessary layers of management.
Google CEO Sundar Pichai echoed this view, saying:
“We need to become more efficient as we scale. Growth should not always mean adding more headcount.”
This statement reinforces Google’s shift toward a lean management model, where fewer managers oversee larger teams and resources are allocated more effectively.
Employee Concerns and Voluntary Exit Programs
The restructuring has also raised concerns among employees regarding job security and workplace morale. According to reports, Google executives revealed that around ten divisions, including marketing, search, people operations, and hardware, offered a Voluntary Exit Program this year.
Approximately 5% of employees from these departments chose to leave, citing personal reasons. Sundar Pichai clarified that the program was launched based on employee feedback, as many preferred voluntary exits over forced layoffs.
What This Means for Google’s Future
The decision to cut 35% of managers highlights Google’s commitment to becoming a leaner and faster-moving company. By focusing on efficiency and reducing bureaucracy, the tech giant aims to maintain innovation and competitiveness in a rapidly changing industry.
While these changes may feel unsettling for employees, Google believes this new structure will lead to faster decision-making, better use of resources, and stronger long-term growth.