Google told staff it cut around a third of managers overseeing small teams to improve efficiency across the organisation.
“Right now, we have 35% fewer managers, with fewer direct reports than at this time a year ago,” said Brian Welle, vice president of people analytics and performance, according to audio of an all-hands meeting reviewed by CNBC.
The 35% number refers to managers who oversee fewer than three people, many of whom will likely stay at the company as individual contributors, a source familiar with the matter told CNBC.
This comes as Google leaders have been reducing management layers for well over a year, including cutting manager, director and VP roles by 10% in December last year.
Google also eliminated 6% of its workforce in 2023 and has implemented cuts in various divisions since then.
This follows a wider trend among Big Tech companies that have reduced staff for efficiency, with Microsoft, Meta, Intel, and Amazon making similar moves.
This comes as the tech companies rely more heavily on AI, even encouraging staff to use it as part of their day-to-day jobs in the hopes of increasing productivity.
Earlier this year, Google CEO Sundar Pichai said Google estimated a 10% boost in productivity from engineers using AI.
