Google CEO announces 10pc reduction in top management roles to boost efficiency

CALIFORNIA: In an all-hands meeting on Wednesday, Google CEO Sundar Pichai announced a 10% reduction in top management positions as part of the company’s ongoing efficiency initiative. This move is part of a broader strategy to streamline operations and enhance productivity, as detailed by two employees who attended the meeting and requested anonymity due to confidentiality, reported Business Insider.

Pichai explained that the efficiency measures involved a reduction in roles including managers, directors, and vice presidents. According to a Google spokesperson, some of these positions were transitioned to non-managerial roles, while others were entirely eliminated.

Google’s focus on efficiency has been ongoing for more than two years. In September 2022, Pichai stated a goal for the company to become 20% more efficient. Subsequently, in January, Google undertook a significant layoff, cutting 12,000 positions.

This efficiency drive has been propelled by the emergence of competitors in the AI space, such as OpenAI, which pose challenges to Google’s search business. In response, Google has augmented its core services with generative AI features and introduced new products, including a video generator that outperformed OpenAI’s offerings in early tests, alongside new Gemini models featuring a reasoning component that elucidates its thought processes.

In May 2024, Google eliminated 200 positions from its “core team” and relocated some jobs overseas as part of its restructuring efforts to cut costs, according to internal sources reported by CNBC. Nearly 50 positions in California’s engineering team were affected. The core team is responsible for developing the technical foundation behind Google’s key products, ensuring user safety online, and managing the global IT infrastructure.