Why Did Google Cut Top Roles? Sundar Pichai Shares the Strategy

New Delhi: Google has reduced its top management positions by 10% as part of an effort to streamline operations, CEO Sundar Pichai revealed during an all-hands meeting on Wednesday.

Pichai explained that over the past few years, Google has implemented measures aimed at simplifying its structure and improving efficiency, two employees who attended the meeting revealed to leading Business website. The CEO noted that the efficiency initiative included cutting managers, directors, and vice presidents by 10%, with some positions reclassified to nonmanagerial roles while others were eliminated entirely.

A Google spokesperson confirmed these adjustments to the portal, stating that the company had shifted or removed certain roles as part of its broader efficiency drive.

The push for efficiency began more than two years ago. In September 2022, Pichai stated his goal for Google to improve efficiency by 20%. In January 2023, the company conducted a historic layoff round, cutting 12,000 positions.

This drive has coincided with increasing competition from AI-focused companies like OpenAI, whose innovations pose challenges to Google’s search dominance.

In response, Google has incorporated generative AI into its core operations and introduced a wave of new AI features, including an advanced AI video generator outperforming OpenAI in early trials and the release of Gemini models, featuring a “reasoning” model capable of explaining its thought process.

During the meeting, Pichai also addressed the concept of “Googleyness,” stating that the term required an update to align with the evolving nature of the company.