The news: Google has cut 35% of managers overseeing small teams, part of a sweeping drive to streamline operations. The focus: fewer layers, less bureaucracy, and a leaner leadership footprint. Many managers now serve as individual contributors, per CNBC.

The move follows parent Alphabet’s pattern of cost-cutting, including a 6% workforce reduction in 2023 and ongoing buyouts this year. Despite recent layoffs, Alphabet’s stock has surged—rising 10% so far this year after a blockbuster 2024. 

Efficiency is driving the loss of headcount: Voluntary Exit Programs (VEP) have replaced blanket layoffs in 10 key divisions—most notably search, marketing, and hardware. Uptake has been modest but steady, with 3%–5% of targeted staff opting in.

• Google’s leadership now accounts for a smaller share of total staff.
• CEO Sundar Pichai stresses scaling capacity without expanding staff.
• Alphabet’s CFO Anat Ashkenazi is cutting costs while planning $13 billion in generative AI (genAI) investments next quarter.

Big Tech’s shifting work culture: The shift brings concerns about morale and job security. Executives say most employees taking buyouts are seeking career breaks or time for family, rather than jumping ship to competitors. 

Google’s cuts point to a broader Big Tech trend: thinning out middle management in the name of speed and efficiency. Stripping layers may accelerate decision-making but risks hollowing out functions like innovation, mentorship, business continuity, and customer support. 

• Microsoft is trimming about 3% of its workforce—roughly 6,000 to 7,000 jobs—primarily in middle management. The cuts span LinkedIn, Xbox, and core software engineering as the company flattens its structure.
• Amazon has also pared managerial roles as part of warehouse and retail restructuring.
• Apple has slowed hiring and quietly redistributed oversight in hardware and software teams.

Our take: Google’s rapid thinning of management aims to make the tech giant more nimble and cost-efficient. The realignment signals a company eager to do more with less—possibly speeding decision cycles and innovation, but also tightening access to internal advocates and resources.

Leaner teams could mean faster product rollouts and ad platform tweaks—but also less support and fewer points of contact for advertisers inside Google’s vast marketing machine.

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