Google Streamlines Workforce: Sundar Pichai Cuts 35% of Managerial Roles to Drive Agility and Innovation
by Muskan Kansay - 5 days ago - 2 min read
Google’s quest for agility just gained sharper edges: the tech giant has slashed more than a third of its small-team managerial roles in a sweeping move towards a leaner, faster organizational structure.
Leadership Streamlined
Under CEO Sundar Pichai’s directive, Google eliminated 35% of its managerial positions overseeing teams of fewer than three employees. Instead of ushering out the managers entirely, most affected leaders have shifted to individual contributor roles, blending deep expertise back into product teams without layers of hierarchy.
Efficiency Over Expansion
The change isn’t just about numbers. Google aims to ensure leadership forms a smaller slice of its overall workforce, boosting decision speed and reducing internal roadblocks. Pichai stated the pressing need: “We have to be more efficient as we scale up so we don’t solve everything with headcount,” emphasizing innovation must flow unhindered by needless management layers.
Layoff History and Ongoing Cuts
This managerial reshuffle follows two turbulent years at Alphabet. January 2023 saw Google’s largest layoff ever, cutting 12,000 jobs, 6% of its global team. The trimming didn’t end there: Google Cloud, Android, Pixel, Chrome, and the Global Business Unit have all faced consecutive rounds of layoffs and team consolidations in 2025, with hiring freezes urging everyone to "do more with less".
Voluntary Exit Options
Facing constant restructuring, Google introduced voluntary exit programmes (VEPs) in major product areas like search, marketing, hardware, and people operations. Between 3% and 5% of staff in these units have chosen buyouts to take career breaks or support family needs, a direct response to employee feedback preferring buyouts over blanket layoffs.
Agility for the AI Race
At its core, Google’s pivot is about staying nimble as AI reshapes the industry’s landscape. Fewer managers, streamlined teams, and empowered employees: it’s a lean model built not just for cost savings, but for innovation at speed.