Google laid off over 35 per cent of managers who were heading small teams at the big tech company. The managers impacted by the layoffs last week, were overseeing teams comprising three or less members, according to a report by CNBC.
The one-third reduction in headcount comes as Google looks to improve efficiencies across the company, which has seen several rounds of layoffs and buyouts in recent years as part of its restructuring efforts.
In 2023, Google announced that it was cutting about 6 per cent of its workforce spread across various divisions. At the start of this year, the company announced that it has set up a ‘voluntary exit programme’ for members of the Android and Pixel teams as well as employees involved in other projects. It has also slowed hiring.
In a recent town hall meeting with senior Google executives, including CEO Sundar Pichai, employees reportedly raised questions regarding job security, internal barriers, and Google’s workplace culture.
“Right now, we have 35% fewer managers, with fewer direct reports than at this time a year ago. So a lot of fast progress there,” Brian Welle, vice president of people analytics and performance, was quoted as saying. “When we look across our entire leadership population, that’s managers, directors and VPs, we want them to be a smaller percentage of our overall workforce over time,” he added.
Meanwhile, Pichai reportedly reiterated the need for the company “to be more efficient as we scale up so we don’t solve everything with headcount” at the meeting.
Buyouts over layoffs?
In recent months, big tech companies such as Google and Amazon have been offering buyouts to employees instead of announcing massive layoffs. Analysts have estimated that about one-third of resignations in Silicon Valley in 2025 may not be voluntary but negotiated with compensation, as per reports.
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Google’s voluntary exit programme is open for US-based employees in ten product units, including search, marketing, hardware and people operations teams. Around three to five per cent of staffers have accepted buyouts as part of this programme, Fiona Cicconi, Google’s chief people officer, revealed at the town hall.
As part of the programme, eligible Google employees would receive around 14 weeks of base pay plus one additional week for each year of service, along with accelerating stock vesting (a process where an employee gains full rights over their stock options of shares offered by the company) and six months of health coverage.
“It’s a lot of work that’s gone into implementing the VEP program, and I’m glad we’ve done it. It gives people agency, and I’m glad to see it’s worked out well,” Pichai was quoted as saying.
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