Google has removed approximately 35 per cent of managers overseeing small teams in the past year as part of a sweeping efficiency drive, company executives disclosed during an all-hands meeting, according to a recording reviewed by CNBC. Brian Welle, Vice President of People Analytics and Performance, told employees: “Right now, we have 35 % fewer managers, with fewer direct reports than at this time a year ago… So a lot of fast progress there.”
This significant managerial reduction pertains specifically to those overseeing fewer than three direct reports. Sources familiar with the matter told both CNBC and Business Insider that many of these individuals were retained by Google in individual contributor roles following the structural changes.
In his remarks, Welle emphasised the broader objective: trimming bureaucratic layers and ensuring that leadership—defined to encompass managers, directors, and VPs—forms a smaller proportion of Google’s overall workforce over time. Google’s CEO, Sundar Pichai, reinforced this point, stating that the company must “be more efficient as we scale up so we don’t solve everything with headcount.”
This move aligns with Google’s ongoing cost-saving efforts that have unfolded since 2023, when the company eliminated around 6 per cent of its workforce. In October last year, Alphabet’s finance chief Anat Ashkenazi announced intentions to extend cost-cutting measures further. Since then, Google has slowed hiring and offered employees voluntary buyouts as part of a Voluntary Exit Program (VEP) in ten product areas including search, hardware, marketing, and people operations.
Fiona Cicconi, Google’s Chief People Officer, told staff that between 3 and 5 per cent of employees in those targeted teams accepted the VEP. She described the programme as “actually quite successful,” with many participants citing a desire for a career break or time to care for family members. Pichai added that VEPs were introduced in response to employee feedback preferring voluntary departure over blanket layoffs, noting: “It gives people agency, and I’m glad to see it’s worked out well.”
During the town-hall, some staff asked whether Google would adopt a policy akin to Meta’s “recharge” sabbatical—which offers a month-long break after five years. Alexandra Maddison, Google’s Senior Director of Benefits, said no; she stressed that the company already offers ample leave and “we’re very confident that our current offering is competitive.” She declined to institute a paid sabbatical. Pichai joked, to laughter, “Should we incorporate all policies of Meta while we’re at it? Or should we only pick and choose the few policies we like?… No, probably not.”
Externally, analysts and media have noted that this restructuring is emblematic of broader tech industry trends. Business Insider emphasised Google’s intent to reduce managerial ranks to drive efficiency, while TipRanks characterised the cuts as part of Google’s ongoing efficiency plan.
The restructuring comes amid strong financial performance: Alphabet’s share price is up about 10 per cent in 2025, following gains of 36 per cent in 2024 and 58 per cent in 2023. This raises questions about how Google is balancing investor expectations with internal workforce optimisation.
The cuts also sparked discussion among employees about the role and necessity of small-team managers. Comments on internal and social platforms, including one TechStartups report, mention that many of these removed roles resembled “player-coach” tech leads embedded in teams rather than full-time managers. One commenter on the r/stocks subreddit summarised: “Many of those managers stayed with the company as individual contributors,” suggesting a strategy of redeployment over termination.
As Google juggles efficiency gains with organisational health, maintaining morale and productivity among remaining staff may be a challenge. The emphasis remains on flattening structures, streamlining operations, and ensuring that leadership yields greater value relative to its size—rather than simply expanding headcount.