In a move to improve efficiency, Google has reduced its top management positions by 10%, CEO Sundar Pichai revealed during an all-employee meeting. This decision is part of the company’s ongoing efforts to simplify operations and drive productivity.
According to sources who attended the meeting, Pichai explained that the company has been making strategic changes over the past few years to enhance its efficiency. These changes include cutting 10% of management roles, such as managers, directors, and vice presidents. Some positions have been shifted to individual contributor roles, while others were eliminated.
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This efficiency drive is part of a broader initiative that began more than two years ago. In September 2022, Pichai set a target for Google to become 20% more efficient. The company’s push towards streamlining operations reached a peak in January 2023, with the announcement of a historic round of layoffs that saw 12,000 jobs cut.
These efforts are occurring in parallel with increasing competition from artificial intelligence startups like OpenAI, which are challenging Google’s dominance, especially in the search engine space. In response, Google has introduced a series of generative AI features, such as an advanced AI video generator that outperformed OpenAI’s in early tests, as well as the launch of its Gemini models, including one designed for reasoning and demonstrating the AI’s thought process.