Google has confirmed a 35% reduction in managers overseeing small teams, marking a significant shift in its organizational structure.
The move, announced during an internal all-hands meeting on August 27, 2025, is part of CEO Sundar Pichai’s broader strategy to streamline operations, reduce bureaucracy, and improve decision-making speed across the company.
The cuts primarily affect managers supervising fewer than three employees.
Rather than widespread layoffs, many of these managers have been reassigned to individual contributor roles, allowing Google to retain their expertise while flattening its hierarchy.
Rationale: Efficiency Over Expansion at Google
Sundar Pichai emphasized the need for leaner operations, stating, “We need to be more efficient as we grow, so we don’t just throw more people at every problem.”
This marks a departure from Google’s earlier growth model, which relied heavily on rapid hiring and layered management to scale operations.
Brian Welle, Google’s Vice President of People Analytics and Performance, explained that the company now has 35% fewer managers with direct reports than it did a year ago.
He added that the goal is to reduce the proportion of leadership roles—managers, directors, and vice presidents—within the overall workforce over time.
Voluntary Exit Program Offers Alternative to Layoffs
To soften the impact of restructuring, Google introduced a Voluntary Exit Program (VEP) in January 2025.
The program offers buyouts to employees in areas such as search, marketing, hardware, and people operations.
According to Chief People Officer Fiona Cicconi, 3% to 5% of eligible employees have opted into the program, often citing personal reasons like family commitments or career breaks.
Pichai praised the initiative, noting that it gives employees “agency” during uncertain times and is a more thoughtful alternative to mass layoffs.
Risks and Employee Sentiment
While the company frames the changes as necessary for innovation and agility, concerns remain.
Employees have raised questions about mentorship gaps, increased workloads for remaining managers, and the overall impact on workplace culture.
Some fear that the reduction in leadership roles could weaken support systems for junior staff and slow career progression.
An anonymous employee told The HR Digest, “This shows how fragile middle-management roles have become in the age of AI and automation.”
The sentiment reflects broader anxieties about job security and the evolving nature of work in tech.
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