In a significant development at Google, CEO Sundar Pichai has announced a 10 percent cut in management and vice president level roles. The decision is part of a broader organizational restructuring aimed at increasing operational efficiency and aligning resources with the company’s strategic priorities. According to a report by Business Insider, the move underlines Google’s commitment to streamlining its workforce amid ongoing economic challenges.

According to the report, according to two people familiar with the matter, Pichai said Google has implemented changes over the past few years to streamline operations and improve efficiency. It also said Pichai highlighted a 10 percent reduction in managerial, director and vice president roles as part of these efforts. The recent changes emphasize Google’s ongoing efforts to adapt its operations in response to growing competition, particularly from AI-focused companies like OpenAI, which are challenging its leadership in the search market.

During the same meeting, Pichai discussed the evolution of Google’s corporate culture, recognizing the need to reevaluate the company’s defining value of “Googleyness”. This cultural change is designed to better align with the demands of today’s business environment and respond to competitive pressures, particularly those arising from rapid advances in artificial intelligence. These changes underscore Google’s dedication to developing a culture that fosters agility and innovation in a constantly evolving industry.

The restructuring follows extensive cost-cutting measures implemented by major tech companies over the past year. Google, despite its strong market position and strong revenue streams, is not immune to the economic headwinds facing the tech industry. Rising inflation, slowing advertising revenues and global uncertainties have led the company to reevaluate its workforce and operational strategies.

Google’s restructuring follows a trend seen among other tech giants. For example, Amazon has focused on reducing middle management layers under CEO Andy Jassy, ​​with an emphasis on empowering individual contributors and speeding up decision making. These approaches, widely adopted in the tech sector, aim to foster innovation and enable companies to adapt more quickly to technological advances.

This is not the first time Google has resorted to layoffs in recent months. Google has been focused on improving efficiency for over two years. In September 2022, Pichai set a goal for the company to become 20 percent more efficient. The following January, the initiative led to a historic round of layoffs, resulting in the loss of 12,000 jobs. As Google implements these changes, the tech giant is also looking for ways to further optimize its operations, including investing in automation and artificial intelligence to improve productivity.