Alphabet Inc.’s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google has reportedly eliminated 35% of managers overseeing teams of three employees or fewer over the past year.
Management Layer Reduction Accelerates
Brian Welle, Vice President of People Analytics and Performance, disclosed the figures during an all-hands meeting last week.
The cuts specifically targeted managers of small teams as part of a broader initiative to reduce managerial and director roles company-wide, according to internal company communications reported by Business Insider.
Google previously reported a 10% reduction in manager, director, and VP positions in December, signaling an ongoing structural transformation.
Google did not immediately respond to Benzinga's request for comment.
Tech-Wide Efficiency Movement
Google joins a growing list of technology giants implementing organizational flattening strategies. Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN), Intel Corp. (NASDAQ:INTC) and Meta Platforms Inc. (NASDAQ:META) have pursued similar management reduction initiatives to accelerate decision-making and operational efficiency.
Microsoft eliminated 9,000 positions in its second 2025 layoff round, affecting under 4% of staff while maintaining $80 billion in AI infrastructure investments.
Oracle Corp. (NASDAQ:ORCL) cut approximately 10% of its Oracle Cloud Infrastructure workforce in India, following Meta’s successful 2023 “Year of Efficiency” playbook that contributed to 190% stock gains.
AI Integration Strategy
Beyond structural changes, Google is pushing employees to integrate artificial intelligence into daily workflows. CEO Sundar Pichai reported an estimated 10% productivity boost among engineers utilizing AI tools, reflecting the company’s dual approach of workforce optimization and technology adoption, according to the report.
The company eliminated specific engineering roles combining technical leadership and management functions, with many affected employees transitioning to other internal positions, according to sources with direct knowledge.
Market Implications
The management restructuring represents Google’s response to intensifying competition in cloud services and AI development.
The trend reflects broader concerns about AI’s long-term impact on employment, with some economists projecting that automation could affect 25% of U.S. jobs by 2030, according to Goldman Sachs research.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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