As part of its company-wide goal to increase efficiency, Google has dismissed 35% of managers who lead small teams over the past year. Brian Welle, Vice President of People Analytics and Performance, shared this information during a meeting with employees.
Welle said, "Currently, we have 35% fewer managers compared to last year, and these managers have fewer direct reports. This represents rapid progress."
Google specifically reduced the number of managers overseeing fewer than three employees, choosing instead to retain many of these individuals as individual contributors within the company.
CEO Sundar Pichai emphasized that as the company scales, it "needs to be more efficient rather than solving every problem by hiring new people."
In 2023, Google laid off about 6% of its total workforce and subsequently downsized various departments. Anat Ashkenazi, who became CFO at the end of 2024, announced that cost-cutting measures would be "taken a bit further."
This year, the company offered a Voluntary Exit Program (VEP) to employees in areas such as search, marketing, hardware, and human resources. Fiona Cicconi, HR Director, said that between 3% and 5% of employees in the relevant teams took advantage of the offer.
Cicconi added that most employees who chose to leave wanted to "take a career break or spend time caring for family members." Pichai described the VEP as a positive method because it "gives employees a choice."
During the meeting, some employees asked if Google would adopt a policy similar to Meta's, which offers one month of paid leave ("recharge") to employees who have completed five years.
Google managers responded that existing leave and vacation policies were sufficient and that there were no plans for a paid sabbatical program.
Pichai joked, "Should I take all of Meta's policies and run the company like that, or just pick the ones that work for us?"
Google is continuing its downsizing through layoffs, voluntary exits, and reducing the number of managers.
While this strategy has sparked discussions among employees about job security and company culture, management appears determined to continue its efficiency-focused policies.
