CEO Sundar Pichai announces 10 per cent job cuts, says it is to boost efficiency

News Mania Desk / Piyal Chatterjee / 20th December 2024

In a big milestone for Google, CEO Sundar Pichai has announced a 10% cut in management and vice president-level positions. The decision is part of a larger organisational reorganization that aims to improve operational efficiency and match resources with the company’s strategic ambitions. According to Business Insider, this decision demonstrates Google’s dedication to reducing its personnel despite persistent economic constraints.

According to two sources familiar with the situation, Pichai noted that Google had undertaken improvements in recent years to simplify processes and boost efficiency, according to the article. It further reported that Pichai mentioned a 10% decrease in management, director, and vice president posts as part of these initiatives. The new adjustments highlight Google’s continued attempts to improve its operations in response to increasing competition, particularly from AI-focused businesses such as OpenAI, who are challenging its search market leadership.

During the same meeting, Pichai spoke about the development of Google’s corporate culture, acknowledging the need to rethink the company’s defining characteristic of “Googleyness.” This cultural revolution is intended to better match with today’s economic objectives and adapt to competitive pressures, particularly those resulting from rapid advances in artificial intelligence. The improvements demonstrate Google’s commitment to creating a culture that fosters adaptability and creativity in an ever-changing market.

The restructure follows larger cost-cutting initiatives adopted by major technology businesses during the last year. Despite its strong market position and income sources, Google is not immune to the economic headwinds that are affecting the technology industry. Rising inflation, decreased ad income, and global concerns have forced the corporation to reconsider its staff and operational plans.

Google’s reorganization is consistent with the practices of other digital behemoths. Under CEO Andy Jassy, for example, Amazon has prioritized empowering individual contributors and accelerating decision-making by removing middle management levels. These tactics, which are commonly used in the technology sector, are meant to encourage innovation and allow businesses to adapt more quickly to technological advancements.

This is not the first time Google has implemented layoffs in recent months. Google has been working on increasing efficiency for more than two years. In September 2022, Pichai established a target for the corporation to become 20% more efficient. This strategy resulted in an unprecedented round of layoffs in January, with 12,000 positions eliminated. As Google makes these improvements, the company is also looking into methods to further optimize its operations, such as investing in automation and artificial intelligence to boost efficiency.