Google has eliminated more than one-third of its managers overseeing small teams, an executive told employees last week, as the company continues its focus on efficiencies across the organization.<\/p>\n
\u201cRight now, we have 35% fewer managers, with fewer direct reports\u201d than at this time a year ago, said Brian Welle, vice president of people analytics and performance, according to audio of an all-hands meeting reviewed by CNBC. \u201cSo a lot of fast progress there.\u201d<\/p>\n
At the meeting, employees asked Welle and other executives about job security, \u201cinternal barriers\u201d and Google\u2019s culture after several recent rounds of layoffs, buyouts and reorganizations.<\/p>\n
Welle said the idea is to reduce bureaucracy and run the company more efficiently.<\/p>\n
\u201cWhen we look across our entire leadership population, that\u2019s mangers, directors and VPs, we want them to be a smaller percentage of our overall workforce over time,\u201d he said.<\/p>\n
The 35% reduction refers to the number of managers who oversee fewer than three people, according to a person familiar with the matter. Many of those managers stayed with the company as individual contributors, said the person, who asked not to be named because the details are private.<\/p>\n
Google CEO Sundar Pichai weighed in at the meeting, reiterating the need for the company \u201cto be more efficient as we scale up so we don\u2019t solve everything with headcount.\u201d<\/p>\n
Google eliminated about 6% of its workforce in 2023, and has implemented cuts in various divisions since then. Alphabet finance chief Anat Ashkenazi, who joined the company last year, said in October that she would push cost cuts \u201ca little further.\u201d Google has offered buyouts to employees since January, and the company has slowed hiring, asking employees to do more with less.<\/p>\n
Regarding the buyouts, executives at the town hall said that a total of 10 product areas have presented \u201cVoluntary Exit Program\u201d offers. They\u2019ve applied to U.S.-based employees in search, marketing, hardware and people operations teams this year. <\/p>\n
Fiona Cicconi, Google\u2019s chief people officer, said at last week\u2019s meeting that between 3% and 5% of employees on those teams have accepted the buyouts.<\/p>\n
\u201cThis has been actually quite successful,\u201d she said, adding \u201cI think we can continue it.\u201d<\/p>\n
Pichai said the company executed the voluntary buyouts after listening to employees, who said they preferred that route to blanket layoffs.<\/p>\n
\u201cIt\u2019s a lot of work that\u2019s gone into implementing the VEP program, and I\u2019m glad we\u2019ve done it,\u201d Pichai said. \u201cIt gives people agency, and I\u2019m glad to see it\u2019s worked out well.\u201d<\/p>\n
Cicconi said one of the main reasons employees are taking the buyouts is because they want to take time off from work.<\/p>\n
\u201cIt\u2019s actually quite interesting to see who\u2019s taking a VEP, and it\u2019s people sort of wanting a career break, sometimes to take care of family members,\u201d she said.<\/p>\n
CNBC previously reported that the layoffs hurt morale as the company was downsizing while at the same time issuing blowout earnings and seeing its stock price jump. Alphabet\u2019s shares are up 10% this year after climbing 36% in 2024 and 58% the year prior.<\/p>\n
At another point in the town hall, employees asked if Google would consider a policy similar to Meta\u2019s \u201crecharge,\u201d a month-long sabbatical that employees earn after five years at the company.<\/p>\n
\u201cWe have a lot of leaves, not least our vacation, which is there for exactly that \u2014 resting and recharging,\u201d said Alexandra Maddison, Google\u2019s senior director of benefits.<\/p>\n
She said the company is not going to offer paid sabbatical.<\/p>\n
\u201cWe\u2019re very confident that our current offering is competitive,\u201d Maddison said.<\/p>\n
Meta didn\u2019t immediately respond to a request for comment.<\/p>\n
Other executives jumped in to compare the two companies\u2019 benefits.<\/p>\n
\u201cI don\u2019t think they have a VEP at Meta by the way,\u201d Cicconi said.<\/p>\n
Pichai then asked, to some laughs from the audience, \u201cShould we incorporate all policies of Meta while we\u2019re at it? Or should we only pick and choose the few policies we like?\u201d<\/p>\n
\u201cMaybe I should try running the company with all of Meta\u2019s policies,\u201d he continued. \u201cNo, probably not.\u201d<\/p>\n<\/p>\n
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