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Major Leadership Restructuring

Google has significantly reshaped its management ranks over the past year, eliminating 35% of managers who oversaw very small teams, according to Brian Welle, the company’s vice president of people analytics and performance. Many of those affected were reassigned to individual contributor roles rather than being let go, as part of Google’s effort to cut back on bureaucracy and run leaner operations.

At a recent all-hands meeting, Welle told employees that the move reflects the company’s strategy to ensure leaders make up a smaller percentage of the overall workforce, allowing Google to scale without adding unnecessary layers of management.

Pichai’s Call for Efficiency

Google CEO Sundar Pichai reinforced the rationale, saying the company must “be more efficient as we scale up so we don’t solve everything with headcount.” Pichai has long pushed for trimming excess layers in the organization, particularly after Google cut about 6% of its workforce in 2023, one of the largest layoffs in the company’s history.

That restructuring continued into 2024 and 2025 with further reductions, voluntary buyouts, and slowed hiring. Alphabet’s new Chief Financial Officer, Anat Ashkenazi, has made it clear that cost discipline will remain a central priority, signaling cuts would go “a little further” than before.

Voluntary Exit Programs Expand

To avoid blanket layoffs, Google rolled out Voluntary Exit Programs (VEPs) across 10 product areas, including search, marketing, hardware, and people operations. Between 3% and 5% of employees in those divisions have accepted the offers, according to Chief People Officer Fiona Cicconi, who described the program as “quite successful.”

Employees who took the buyouts often cited the desire for a career break or the need to care for family members. Cicconi noted that the program was designed after listening to staff feedback, giving workers more control over their futures compared to traditional layoffs.

Morale Concerns Amid Profitability

Despite these structural changes, employee morale has been under strain. Google has reported strong financial results and soaring stock gains while simultaneously downsizing. Alphabet’s stock rose 58% in 2023 and another 36% in 2024, and it remains up more than 10% so far in 2025.

This contrast — shrinking headcount during periods of record profitability — has led to tough questions from employees about the company’s culture, stability, and long-term vision.

Benefits and Comparisons to Meta

At the town hall, employees asked if Google would consider implementing a sabbatical program similar to Meta’s “recharge” policy, which grants a month-long break after five years. Alexandra Maddison, Google’s senior director of benefits, dismissed the idea, saying Google already offers a competitive package of vacation and leave options.

Executives joked about comparisons to Meta, with Pichai quipping whether Google should “incorporate all policies of Meta” before dismissing the idea. While lighthearted, the exchange underscored a growing concern among employees about work-life balance at the company.

The Bigger Picture

Google’s ongoing restructuring highlights a larger trend across Big Tech: balancing profitability, efficiency, and employee satisfaction in an era of rising AI investments and tighter cost control.

By cutting back on low-level management, leaning on voluntary exits, and slowing hiring, Google is sending a clear message — the company intends to stay competitive and nimble, even if it means reshaping its culture and workforce along the way.

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