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Google Cuts One-Third of Managers in Move to Streamline Its Organizational Structure
In a strategic move focused on efficiency and simplifying its hierarchy, Google announced in an internal meeting last week that it has reduced 35% of its managers responsible for small teams. The decision, led by Brian Welle, Vice President of People Analytics and Performance, came in the context of seeking greater agility and less bureaucracy (Economic Time).
Cuts Focused on Small-Team Leaders
The impact of the cuts fell especially on managers who had three or fewer direct reports — a measure aimed at eliminating overlapping hierarchy and favoring a leaner organizational model (Indian Express).
As Welle reported, “we now have 35% fewer managers with fewer direct reports than a year ago.”
During the internal meeting, CEO Sundar Pichai reinforced this message by noting that the company should not “solve everything with headcount.”
“We don’t solve everything with headcount”
In a more light-hearted moment, Pichai joked: “Maybe I should try to run the company with all of Meta’s policies… or just choose a few we like.” (MoneyControl)
Voluntary Exit Program (VEP): Alternative to Layoffs
In addition to the cuts, Google implemented a voluntary exit program — the Voluntary Exit Program (VEP) — offered in 10 product areas including search, marketing, hardware, and people operations. The idea was to give employees the opportunity to leave on their own initiative with favorable conditions (Economic Times).
According to Fiona Cicconi, Director of Human Resources, between 3% and 5% of eligible employees in the U.S. accepted the program. Many opted for the VEP seeking a break in their career or to take care of family members.
Restructuring as a Trend in the Tech Sector
Google’s move is not isolated; it reflects a broader trend of “flattening” corporate structures in major technology companies. Mark Zuckerberg, of Meta, was one of the pioneers in proposing an ideal ratio of seven to eight employees per manager, instead of just three or four as was common during the post-pandemic hiring boom (Business Insider).
The goal of this change, according to Zuckerberg, is to reduce communication latency, empower employees, and accelerate decision-making.
Other giants like Amazon, Microsoft, and Salesforce have also adopted similar measures, aiming for greater operational efficiency and a more agile market response.
Impacts and Challenges
Among the potential benefits of this restructuring are greater clarity in responsibilities and more agile decision-making processes. However, critics warn that cuts to middle managers can hinder strategy execution, direct support to staff, and the company’s cultural health (Business Insider, Wall Street Journal).
In addition, while the VEP model has advantages by offering voluntary exit with benefits, it may create uncertainty about job stability and increase the workload of those who remain.
Financial and Strategic Context
The combination of cuts and voluntary programs is part of a broader move to optimize costs. Recently, companies like Microsoft have taken similar measures — for example, cutting about 3% of their workforce in May 2025, also with a focus on reducing managerial layers and increasing agility (AP News).
According to reports, over the past three years American companies have reduced approximately 3.5% of their white-collar workforce, reflecting a philosophical shift: trimming not because of a crisis but to focus on efficiency. The adoption of technologies such as generative AI has also enabled doing more with less — increasing productivity without necessarily increasing headcount.
Conclusion
With the elimination of 35% of its managers in leadership positions over small teams and the adoption of a voluntary exit program, Google signals its commitment to a more agile, less bureaucratic, and potentially more resilient structure.
This restructuring reflects a consolidated movement in the tech sector, where efficiency, automation, and new ways of working are reshaping traditional organizational design.
