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Google laid off 10 per cent of managerial staff in efficiency push amid rising AI competition: Report

In September 2022, Sundar Pichai emphasised his vision for making Google 20 per cent more efficient. Just a few months later, in January 2023, the company implemented one of its largest workforce reductions, eliminating 12,000 jobs globally.

Google CEO Sundar Pichai.
Google CEO Sundar Pichai. Image Source : AP
New DelhiPublished: , Updated:

Google has trimmed its top management positions by 10 per cent as part of its multi-year effort to enhance operational efficiency, according to a report by Business Insider. CEO Sundar Pichai reportedly shared this update during an all-hands meeting on Wednesday, December 18. The reduction in the workforce specifically affected roles such as managers, directors, and vice presidents. Some of these positions have been transitioned to non-managerial roles, while others were completely eliminated, a Google spokesperson revealed in the report. Notably, this restructuring is a continuation of Google’s broader strategy to foster a more agile organisational framework to streamline operations and address growing competition in the field of Artificial Intelligence (AI), particularly from OpenAI.

Targeting greater efficiency

Pichai is said to have stated that the company has implemented several changes in recent years to enhance efficiency and simplify infrastructure. Google’s spokesperson noted that some of the affected roles were shifted to individual contributor positions, while others were eliminated. This comes after Pichai’s 2022 statement expressing his vision for making Google 20 per cent more efficient. Earlier in January, the company had cut 12,000 jobs.

AI competition as a driving factor

Reports suggest that Google's decision is aligned with its response to the competitive pressure from OpenAI, which is launching innovative products impacting Google's search business. In response, Google has introduced generative AI features to stay competitive. In a recent meeting, Pichai emphasised the need for employees to adapt to the "modern Google" and its evolving strategies.

Previous restructuring efforts

In May 2024, Google had reduced 200 jobs from its core team as part of cost-cutting and restructuring measures. Some roles were outsourced overseas, while approximately 50 positions in the engineering team in California were also cut. Google's latest measures reflect the tech giant's focus on staying agile and competitive in the rapidly evolving AI landscape. 

ALSO READ: Preeti Lobana appointed Head of Google India: Know who she is

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