Google CEO Sundar Pichai reportedly said the search giant has cut a tenth of its executive positions since last year as part of a drive to improve efficiency.
Pichai said during an all-hands meeting Wednesday that Google has reduced the number of managers, directors and vice presidents within its workforce by a total of 10%.
A Google spokesperson said the structural changes Mr. Pichai described as being designed will be rolled out starting in 2023 and do not represent any further job cuts than previously reported.
Some managers have moved into individual contributor roles. This means that managers are no longer responsible for other employees.
The spokesperson added that an unspecified number of other managers were also fired.
First reported by an insider Regarding Mr. Pichai's statement. Shares of Google's parent company Alphabet were flat in trading Friday.
Pichai previously cited “permanent cost reduction” as one of Google's key goals for 2024.
This year alone, Google has cut hundreds of jobs across multiple departments, including its advertising sales team, core engineering team, and hardware division responsible for devices like Pixel, Nest, and Fitbit.
The biggest layoffs came in 2023, when Google cut about 12,000 employees in a major bloodbath.
The restructuring comes as Google seeks to compete in the artificial intelligence space with Sam Altman's OpenAI and other fast-growing rivals.
Google is also in the midst of several high-profile legal battles that could upend its business model. These include the impending collapse of Google's search business after a federal judge declared it a “monopoly” last August.
Google is just one of many Big Tech giants to cut employees in recent months, citing tight economic conditions and a desire to devote more resources to the race for artificial intelligence.
Mark Zuckerberg famously declared 2023 to be Meta's “year of efficiency” while cutting tens of thousands of jobs at the parent company of Facebook and Instagram.
Meta's middle managers have reportedly been told to move into individual contributor roles or resign as part of an effort internally described as “flattening.”
