Google has cut 10% of its top management roles, including director- and vice-president-level positions, in a move to streamline operations and enhance productivity. The announcement was made by CEO Sundar Pichai, who earlier this year outlined a plan to simplify the company’s structure and boost efficiency.
A Google spokesperson clarified to Business Insider that some affected managerial roles will be transitioned into non-managerial positions, while others will be eliminated entirely. This decision aligns with Google’s broader efficiency strategy, first announced in September 2022, which aims to improve efficiency by 20%.
These job cuts follow a larger round of layoffs in January 2023, which saw Google eliminate 12,000 positions, or 6% of its workforce. This move marks one of the most significant rounds of job cuts in the company’s history.
The company is facing increasing competition in the artificial intelligence sector from rivals like OpenAI, which has launched groundbreaking products that challenge Google’s dominance in areas like search. In response, Google has accelerated its AI initiatives, integrating generative AI features into its core products and introducing new tools like an AI video generator and the Gemini model series. The AI video generator has reportedly outperformed OpenAI’s in testing, while the Gemini model series includes a “reasoning” model designed to showcase its decision-making process.
During a meeting with employees, Pichai also discussed the need to redefine “Googleyness,” a term used internally to describe the company’s culture and values. He stated, “It’s time to update what Googleyness means for today’s Google,” signaling a cultural shift to address the company’s current challenges.