Google CEO Sundar Pichai revealed a 10% reduction in top management roles as part of the company's drive for greater efficiency. Speaking at an all-hands meeting on Wednesday, Pichai said Google had implemented changes over the past two years to simplify operations and enhance productivity, according to a Business Insider report.
Business Insider cited two sources who spoke on the condition of anonymity due to restrictions on discussing the matter with the media.
Pichai noted that the changes included a 10% reduction in managers, directors, and vice presidents, according to one source.
A Google spokesperson clarified that some of the roles within the 10% were transitioned to individual contributor positions, while others were eliminated entirely.
The report noted that Google has been focused on improving efficiency for over two years. In September 2022, CEO Sundar Pichai expressed his goal to make the company 20% more efficient. By January 2023, Google conducted a historic round of layoffs, cutting 12,000 jobs.
Google's efficiency drive has coincided with increased competition from AI rivals like OpenAI, which have launched products challenging its search business.
In response, Google has integrated generative AI into its core operations and introduced various new AI tools, including an AI video generator reportedly outperforming OpenAI's in early tests and a new set of Gemini models, featuring a "reasoning" model that explains its thought process.
During Wednesday's all-hands meeting, CEO Sundar Pichai also addressed the term "Googleyness," stating that it needed to be updated to align with the modern era of the company.