Google cuts 10% of management roles in latest layoff round
What's the story
As part of an ongoing efficiency drive, Google has slashed its top management roles by 10%, CEO Sundar Pichai revealed in a company-wide meeting on Wednesday, according to Business Insider. The strategic move is aimed at streamlining the company's operations and making it more efficient overall. The restructuring mainly affected managerial, directorial, and vice presidential positions in the company.
Strategic shift
Restructuring strategy and impact on roles
A Google spokesperson told Business Insider that some of the affected roles were transitioned into non-managerial positions, while others were completely removed. This restructuring strategy is similar to Amazon's approach, designed to expedite decision-making processes. The move comes as part of Google's efficiency drive that has been underway for over two years, with Pichai expressing his desire for Google to become 20% more efficient back in September 2022.
AI advancements
Google's response to rising AI competition
The efficiency drive comes amid growing competition in the AI space from competitors such as OpenAI. In fact, Google has integrated generative-AI features into its core businesses and launched a slew of new AI capabilities in response. These include a groundbreaking AI video generator that has beaten OpenAI's Sora in initial tests and a set of new Gemini models, including one with reasoning capabilities.
Culture shift
Pichai discusses 'Googleyness' and corporate culture transformation
In the same meeting, Pichai also touched upon the idea of "Googleyness," noting that the term needed an update to reflect a modern-day Google. He stressed on a shift in corporate culture and the need to redefine "Googleyness." The term, though having different meanings over the years, is typically perceived as representing what Google looks for in prospective employees.