Google has reportedly cut over a third of its managers overseeing small teams as part of a broader effort to streamline operations and reduce bureaucracy. According to audio from a recent all-hands meeting reviewed by CNBC, the move comes as the company faces increasing pressure to control costs while investing heavily in artificial intelligence. This restructuring follows a series of layoffs, buyouts, and reorganisation efforts that Google has been implementing since 2023.

Google Shake-Up @Google has cut 35% of its managers as layoffs and voluntary buyouts continue to reshape its workforce.

CEO @sundarpichai says the goal is to strip away bureaucracy and run leaner.

Full story pic.twitter.com/zt9Uupawyh
— Tech Startups (@thetechstartups) August 27, 2025

Google has reduced its managerial ranks significantly, with Vice President of People Analytics and Performance Brian Welle revealing that the company now has 35% fewer managers compared to last year. Most of the cuts targeted managers overseeing fewer than three employees, many of whom transitioned back into individual contributor roles rather than leaving the company entirely. The move, according to Welle, is aimed at making the organisation leaner and improving decision-making efficiency.

ALSO SEE: Apple AirTag 2 Rumoured For September Launch Alongside iPhone 17 Series

The restructuring reflects CEO Sundar Pichai’s push for greater efficiency without expanding headcount unnecessarily. Pichai stressed the importance of maintaining an organisational structure that supports innovation by avoiding excessive layers of management. Instead of viewing the cuts as downsizing, leadership positioned the changes as an effort to reduce internal barriers and enable faster, more effective collaboration across teams.

Google has eliminated 35% of managers overseeing small teams in past year, exec sayshttps://t.co/wei870UZzT

…list of 2025 tech layoffshttps://t.co/PwrSC61P0zhttps://t.co/lcrzBhSEsD – Tech Layoff Tracker https://t.co/EUvJGpGqa0

How Will AI Affect the Global Workforce?… https://t.co/UCvAV2wjKh pic.twitter.com/kjgDdv4wtO
— Mo Hossain (@MoHossain) August 28, 2025

The reduction in management roles comes against a backdrop of widespread layoffs and reorganisation at Alphabet since 2023. Google’s largest job cut occurred in January 2023, eliminating about 12,000 roles, or roughly 6% of its global workforce. In 2025, the company has continued to trim across multiple units — including Google Cloud, Platforms and Devices, and the Global Business Unit — while also slowing hiring and urging employees to maximize productivity with fewer resources.

To cushion the impact of restructuring, Google has introduced voluntary exit programmes (VEPs) across divisions such as search, hardware, marketing, and people operations. Between 3% and 5% of staff in those areas opted for the buyout, often citing personal reasons such as career breaks or family responsibilities. Pichai said the programme was created in response to employee feedback that buyouts were preferable to mass layoffs, noting that it gave people “agency” during uncertain times.

ALSO SEE: Samsung Schedules September 4 Unpacked Event, Days Before Apple’s iPhone 17 Reveal