Google Slashes Over A Third Of Managers Leading Small Teams Over Past Year: Report

Benzinga
2025.08.28 06:58
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Google has cut 35% of managers overseeing small teams of three or fewer employees as part of a broader initiative to reduce managerial roles. This follows a previous 10% reduction in management positions. The move aligns with a trend among tech giants like Microsoft and Amazon to streamline operations and enhance efficiency. Additionally, Google is encouraging AI integration in workflows, reporting a 10% productivity boost among engineers using AI tools. This restructuring aims to address competition in cloud services and AI development, amid concerns about automation's impact on jobs.

Alphabet Inc.’s GOOGL GOOG Google has reportedly eliminated 35% of managers overseeing teams of three employees or fewer over the past year.

Management Layer Reduction Accelerates

Brian Welle, Vice President of People Analytics and Performance, disclosed the figures during an all-hands meeting last week.

The cuts specifically targeted managers of small teams as part of a broader initiative to reduce managerial and director roles company-wide, according to internal company communications reported by Business Insider.

Google previously reported a 10% reduction in manager, director, and VP positions in December, signaling an ongoing structural transformation.

Google did not immediately respond to Benzinga's request for comment.

Tech-Wide Efficiency Movement

Google joins a growing list of technology giants implementing organizational flattening strategies. Microsoft Corp. MSFT, Amazon.com Inc. AMZN, Intel Corp. INTC and Meta Platforms Inc. META have pursued similar management reduction initiatives to accelerate decision-making and operational efficiency.

Microsoft eliminated 9,000 positions in its second 2025 layoff round, affecting under 4% of staff while maintaining $80 billion in AI infrastructure investments.

Oracle Corp. ORCL cut approximately 10% of its Oracle Cloud Infrastructure workforce in India, following Meta’s successful 2023 “Year of Efficiency” playbook that contributed to 190% stock gains.

AI Integration Strategy

Beyond structural changes, Google is pushing employees to integrate artificial intelligence into daily workflows. CEO Sundar Pichai reported an estimated 10% productivity boost among engineers utilizing AI tools, reflecting the company’s dual approach of workforce optimization and technology adoption, according to the report.

The company eliminated specific engineering roles combining technical leadership and management functions, with many affected employees transitioning to other internal positions, according to sources with direct knowledge.

Market Implications

The management restructuring represents Google’s response to intensifying competition in cloud services and AI development.

The trend reflects broader concerns about AI’s long-term impact on employment, with some economists projecting that automation could affect 25% of U.S. jobs by 2030, according to Goldman Sachs research.

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