“Maybe I should try running the company with all of Meta’s...,” jokes Sundar Pichai as Google now has 35% fewer managers

Google CEO Sundar Pichai

Google has cut more than a third of its managers overseeing small teams, part of an ongoing effort to make the company leaner and reduce bureaucracy. Brian Welle, vice president of people analytics and performance, told employees at an all-hands meeting that Google now has “35% fewer managers, with fewer direct reports” compared to last year, according to audio reviewed by CNBC.

Google CEO Sundar Pichai reinforced that message, stressing the importance of efficiency as Google continues to scale. “We don’t solve everything with headcount,” he told employees, as per the report.

At the meeting, staff also asked if Google might adopt a sabbatical programme like Meta’s “recharge” leave, which grants employees a month off after five years. Alexandra Maddison, Google’s senior director of benefits, ruled it out, saying the company’s current offerings are already competitive.

Pichai, in a lighter moment, quipped: “Should we incorporate all policies of Meta while we’re at it? Or should we only pick and choose the few policies we like?”

“Maybe I should try running the company with all of Meta’s policies,” he added. “No, probably not.”

The reductions mostly affected managers with fewer than three people reporting to them. Many of those employees remain at Google as individual contributors rather than leaving the company. Welle said the long-term goal is to ensure managers, directors, and vice-presidents represent a smaller share of the overall workforce.

The cuts follow Google’s 2023 layoff of about 6% of its workforce, alongside ongoing buyouts and reorganisations. Alphabet CFO Anat Ashkenazi has said she intends to push cost-cutting “a little further.” Hiring has slowed, with staff asked to do more with fewer resources.

Executives also discussed Google’s “Voluntary Exit Program” (VEP), a buyout scheme offered this year across 10 product areas including search, marketing, hardware, and people operations. Between 3% and 5% of eligible staff have opted in. Chief people officer Fiona Cicconi said many who took buyouts cited a desire for a career break or to care for family members. “This has been actually quite successful,” she said, adding that the company plans to continue the programme.

Pichai framed the buyouts as an alternative to blanket layoffs, saying the scheme “gives people agency” and was developed in response to employee feedback.