Google is undergoing another major reshuffle of its workforce, this time targeting management layers in a bid to simplify operations and accelerate decision-making. The tech giant has cut 35 percent of managerial roles overseeing small teams, a move company executives say is designed to eliminate bureaucracy and sharpen efficiency as Google doubles down on artificial intelligence investments.

According to audio from a recent all-hands meeting reviewed by CNBC, Google’s Vice President of People Analytics and Performance, Brian Welle, informed employees that the company now has “35 per cent fewer managers, with fewer direct reports” compared to last year. The biggest impact has been on managers responsible for fewer than three people. Many of those affected were not laid off but have transitioned back into individual contributor roles.

Welle stressed that the intent behind this restructuring is not simply about job cuts but about reshaping the company’s hierarchy to make leadership positions a smaller proportion of the workforce. “These changes are intended to cut internal barriers and speed up decision-making, rather than simply reduce headcount,” he explained.

The leadership reduction aligns with Google CEO Sundar Pichai’s long-stated goal of driving greater efficiency across the company. During the same meeting, Pichai emphasized: “We must be more efficient as we scale up so we don’t solve everything with headcount.” He added that Google needs to design its structure to support innovation without being weighed down by layers of management.

A Wider Pattern of Workforce Cuts

This latest shake-up comes in the wake of repeated layoffs and reorganization efforts across Alphabet since early 2023. That year, Google executed its largest-ever job cut, eliminating around 12,000 positions—roughly 6 percent of its global staff.

In 2025 alone, multiple divisions have faced reductions. February brought cuts in Google Cloud, while April saw layoffs within the Platforms and Devices unit, which includes Android, Chrome, and Pixel teams. By May, around 200 employees in the Global Business Unit were let go. The message to remaining employees has been clear: the company is urging teams to “do more with less.”

Voluntary Exit Programs to Offset Layoffs

In addition to direct layoffs, Google has rolled out voluntary exit programs (VEPs) across several product areas including Search, Marketing, Hardware, and People Operations. Chief People Officer Fiona Cicconi disclosed that between 3 to 5 percent of staff in these groups have opted in, often citing personal reasons such as career breaks or family responsibilities.

Pichai said this option was created after employee feedback showed a preference for buyouts over blanket layoffs. “It gives people agency, and I’m glad to see it’s worked out well,” he noted.

A Leaner Future

While restructuring can be unsettling, Google insists these changes will pave the way for faster decision-making and a leaner organization that is better equipped to handle the next wave of AI-driven growth. For Pichai, the objective is clear: cut red tape, empower innovation, and build a company that can thrive without relying on headcount expansion.