In a significant move, Google has announced a 10 per cent reduction in managerial positions, including directors and vice presidents. CEO Sundar Pichai confirmed this decision, which is expected to create challenges for many employees facing potential job losses. According to a report by Business Insider, this comes as Google aims to streamline operations and address growing competition in the field of Artificial Intelligence (AI), particularly from OpenAI.
Targeting greater efficiency
Pichai stated that the company has implemented several changes in recent years to enhance efficiency and simplify infrastructure. Google’s spokesperson noted that some of the affected roles were shifted to individual contributor positions, while others were eliminated. This comes after Pichai’s 2022 statement expressing his vision for making Google 20 per cent more efficient. Earlier in January, the company had cut 12,000 jobs.
AI competition as a driving factor
Reports suggest that Google’s decision is aligned with its response to the competitive pressure from OpenAI, which is launching innovative products impacting Google’s search business. In response, Google has introduced generative AI features to stay competitive. In a recent meeting, Pichai emphasised the need for employees to adapt to the “modern Google” and its evolving strategies.
Previous restructuring efforts
In May 2024, Google had reduced 200 jobs from its core team as part of cost-cutting and restructuring measures. Some roles were outsourced overseas, while approximately 50 positions in the engineering team in California were also cut. Google’s latest measures reflect the tech giant’s focus on staying agile and competitive in the rapidly evolving AI landscape.
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