As per a recent report, Google CEO Sundar Pichai proposed a cut of 10 per cent in management and vice president-level posts. The choice is a component of a larger organisational reorganisation that aims to improve operational effectiveness and match resources with the strategic priorities of the business. Business Insider claims that this action demonstrates Google’s resolve to reduce its employment in the face of persistent economic difficulties.
According to the two unnamed people with knowledge of the situation, Pichai said that Google had made adjustments in recent years to increase productivity and streamline operations. It further reported that he highlighted a 10 per cent reduction in managerial, director, and vice president posts as part of these initiatives. The latest adjustments highlight Google’s continuous attempts to streamline its business practices in reaction to escalating competition, particularly from AI-focused firms like OpenAI that are challenging its dominance in the search industry.
Pichai acknowledged the need to reevaluate the company’s defining value of “Googleyness” while discussing the development of Google’s corporate culture during the same discussion. The goal of this cultural shift is to better meet the needs of the modern economic world and react to pressures from the competition, especially those brought on by artificial intelligence’s quick development. The modifications highlight Google’s commitment to developing a culture that encourages adaptability and creativity in a sector that is always changing.
Google’s reorganisation is in line with other tech behemoths. For instance, under CEO Andy Jassy, Amazon has prioritised cutting back on middle management levels while empowering individual contributors and expediting decision-making. These strategies, which are extensively used in the IT industry, are meant to encourage creativity and help businesses adjust to new developments in technology more quickly.
In recent months, Google has laid off employees more than once. For more over two years, Google has been concentrating on increasing efficiency. Pichai set a target for the corporation to increase efficiency by 20% in September 2022. This campaign resulted in a historic round of layoffs the following January, which eliminated 12,000 positions. Along with making these adjustments, Google is looking for ways to further streamline its business practices, such as investing in automation and artificial intelligence to boost output.