Google has removed around 35% of managers overseeing small teams over the past year, as part of a sweeping efficiency push. 

The disclosure came during a recent all-hands meeting, where Brian Welle, Vice President of People Analytics and Performance, told employees, “Right now, we have 35% fewer managers, with fewer direct reports than at this time a year ago… So a lot of fast progress there.”

The strategic cut specifically targeted managers with fewer than three direct reports. Sources told media that many of those affected were retained in individual contributor roles after the restructuring.

Welle said the broader goal is to reduce bureaucratic layers and ensure that leadership, managers, directors, and VPs, accounts for a smaller share of Google’s workforce over time. 

CEO Sundar Pichai reinforced that message, stressing the need to “be more efficient as we scale up so we don’t solve everything with headcount.”

The move is the latest step in Google’s cost-saving strategy. Since 2023, the company has eliminated 6% of its workforce, slowed hiring, and launched a Voluntary Exit Program (VEP) across ten product areas including search, hardware, marketing, and people operations.

Fiona Cicconi, Chief People Officer, said 3 to 5% of employees in targeted groups opted in, describing the program as “quite successful” given many participants wanted a career break or more time with family. 

CEO Pichai added that voluntary departures provided employees with “agency” compared to blanket layoffs.

At the same meeting, employees asked whether Google might adopt Meta’s month-long “recharge” sabbatical. Alexandra Maddison, Senior Director of Benefits, dismissed the idea, saying Google already offers competitive leave. CEO Pichai candidly responded, “Should we incorporate all policies of Meta while we’re at it? Or should we only pick and choose the few policies we like?… No, probably not.”

Industry watchers note that Google’s approach mirrors broader tech trends, with Microsoft, Amazon, Intel, and Meta all cutting middle management to speed up decision-making. Business Insider described Google’s move as a deliberate effort to shrink its managerial ranks. 

Despite these workforce changes, Alphabet’s financial performance has been strong: its stock is up about 10% in 2025, following a 36% rise in 2024 and 58% in 2023. This has sparked debate about whether the restructuring is primarily aimed at investor expectations or long-term organisational health.

Some netizens have also questioned the need for small-team managers, noting many of these roles resembled “player-coach” tech leads rather than full-time leaders. 

Others highlighted that most displaced managers stayed on as individual contributors, suggesting redeployment rather than widespread layoffs.

However, an unnamed Google employee countered, “At Google and can confirm all the small team managers (5 people) got laid off, not downleveled or moved into IC positions, my manager included. Don’t know of any managers during layoffs that got moved into IC roles.”

There were also questions raised about Google’s hiring and leadership pipeline practices.

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As Google continues flattening its structure, the challenge will be balancing efficiency gains with sustaining employee morale and productivity, while ensuring leadership delivers greater value relative to its size.