Google’s Structural Simplification Signals New Direction In Tech Management

Google has removed 35% of its managers overseeing small teams over the past year.

This information was shared during a company-wide meeting, where executives explained the reduction as part of a broader effort to improve efficiency and reduce organizational layers.

The cuts specifically targeted managers responsible for teams of fewer than three employees.

According to company representatives, many of those individuals have remained with the company in non-managerial roles.

Alongside these changes, Google has offered voluntary exit programs in multiple product areas, presenting employees with an alternative to layoffs.

Why It Matters: The reduction in managerial roles and the introduction of structured exit options signal a shift in how Google is managing its workforce. These steps come during a period of continued internal restructuring and follow prior rounds of layoffs and hiring slowdowns.

• 35% Reduction in Small-Team Managers: Google has decreased the number of managers leading very small teams by 35%. The company clarified that these were roles managing fewer than three direct reports. According to a person familiar with the changes, many affected individuals were reassigned as individual contributors rather than being let go.

• Voluntary Exit Programs Introduced Across 10 Divisions: Executives said that ten product areas, including search, hardware, people operations, and marketing, have launched “Voluntary Exit Program” (VEP) offers. These have been made available to U.S.-based employees. Fiona Cicconi, Google’s Chief People Officer, said between 3% and 5% of employees in those areas have accepted the offers.

• Executive Commentary on Efficiency and Workforce Planning: Sundar Pichai, CEO of Google parent company Alphabet, stated that the company needs to be more efficient as it scales. He said the company should avoid addressing all challenges through headcount increases. Vice President of People Analytics Brian Welle added that the goal is to reduce bureaucracy and ensure leadership makes up a smaller proportion of the overall workforce over time.

• Employee Concerns About Job Security and Internal Barriers: During the meeting, employees raised questions about job stability and internal obstacles following a series of layoffs and reorganizations. Executives responded by pointing to the company’s use of VEPs as a response to employee feedback and as an alternative to broader layoffs. Pichai noted that the company preferred voluntary departures where possible, describing the VEP as giving employees more choice in the process.

• No Plans for Paid Sabbaticals: Employees also asked whether Google would consider a policy similar to Meta’s “recharge” sabbatical, which allows a month off after five years of employment. Alexandra Maddison, Google’s Senior Director of Benefits, responded that the company would not be introducing a similar program. She said the current leave policies are considered competitive.

Go Deeper -> Google has eliminated 35% of managers overseeing small teams in past year, exec says – CNBC