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Google has eliminated 35% of its managers who oversee small teams with fewer than three direct reports, as part of a larger effort to streamline the company and reduce bureaucracy. Many of these managers remained at the company in individual contributor roles after the changes, according to CNBC.Â
Google’s goal is to shrink its leadership ranks, including managers, directors, and vice presidents. The company aims improve efficiency as it scales, transitioning away from relying on headcount increases to solve business challenges.
The reduction in management comes during a series of layoffs, buyouts, and reorganizations since last year. Google cut about 6% of its workforce in 2023 and has continued to tighten its headcount through voluntary exit programs (VEPs) and slowed hiring. Ten product areas, including search, marketing, hardware, and people operations, have offered voluntary buyouts to U.S.-based employees this year, with between 3% and 5% of those eligible accepting the offer.
The voluntary buyouts have been framed as a preferred alternative to blanket layoffs, providing employees with more control over their departure. Many who accepted the buyouts reportedly seek career breaks or time off to care for family members.
Despite the cuts, Google’s financial performance remains strong. The company’s stock has climbed steadily, rising 10% this year following gains of 36% in 2024 and 58% in 2023, even as morale has been reported to suffer in the wake of workforce reductions.
