Google Layoffs: Sundar Pichai Cuts 10% of Managerial Roles

Google is making headlines again—this time for trimming 10% of its managerial roles, including directors and vice presidents, as part of its ongoing drive for efficiency and strategic focus on the AI boom.

CEO Sundar Pichai, addressing an all-hands meeting, explained that this move is essential to simplify the company’s structure and adapt to the escalating competition in the AI space, particularly from rivals like OpenAI and many other players.

Photo from Flickr

This announcement is the latest step in Google’s two-year journey to streamline operations by boosting efficiency.

Back in 2022, Pichai set a bold target: to make the tech giant 20% more efficient.

Since then, Google has implemented a series of restructuring measures, including a major layoff in January 2023 that impacted 12,000 employees.

The recent cuts aren't just about layoffs; some managerial positions have been transitioned into individual contributor roles.

“It’s about ensuring we have the right people in the right roles to drive innovation and efficiency,” a Google spokesperson explained.

However, other roles were eliminated entirely, reflecting the company’s shift toward a leaner, more agile structure.

This isn’t an isolated move.

In May 2024, Google cut 200 jobs from its “core team” and relocated several roles overseas.

The core team, known for developing the technical foundation of Google’s flagship products and ensuring user safety online, was particularly affected, with nearly 50 engineering jobs cut in California alone.

Responding to AI Competition

AI has become the battlefield where tech giants like Google and OpenAI are vying for dominance. OpenAI’s rapid advancements, including new generative AI products, have put pressure on Google to up its game.

In response, Google has integrated generative AI features into its core products and launched innovative tools like AI video generators and the Gemini models, which include a "reasoning" model showcasing its thought process.

Pichai emphasized that these changes are not just about keeping up—they’re about redefining Google’s future.

“We’re focused on building helpful products, taking bold risks, and fostering collaboration,” he explained.

And these latest Google layoffs happening now might be the efforts to put focus on AI more than anything. 

Redefining 'Googleyness'

In the same meeting (according to Business Insider report), Pichai took a moment to address “Googleyness,” a term that has historically defined the company’s culture.

Over time, it had become somewhat ambiguous, but Pichai clarified its essence: mission-driven work, innovation, scrappiness, and teamwork.

This cultural reset aligns with Google’s broader strategy of staying nimble and adaptive in a rapidly evolving tech landscape.

Google’s restructuring isn’t happening in isolation. Across the tech industry, companies like Amazon are also cutting middle management and empowering individual contributors to enhance efficiency and innovation.

As the AI race heats up, the ability to adapt quickly could be the difference between leading the pack and falling behind.

For Google, these cuts are about more than just numbers.

They represent a strategic pivot toward a leaner, more focused organization that’s ready to tackle the challenges of a new era in technology.

And with Sundar Pichai at the helm, the message is clear:

Google isn’t just responding to change—it’s driving it.