In a move to improve efficiency, Google has reduced its managerial staff by 10%, including roles at the manager, director, and vice president levels. This decision is part of a broader initiative to streamline the company and address increasing competition from AI-driven companies like OpenAI. CEO Sundar Pichai discussed these cuts during an all-hands meeting, stating that some employees would be reassigned to individual contributor roles, while others would face position eliminations.

This latest round of layoffs follows earlier cuts in 2024, including reductions in Google’s global advertisements and cloud teams. The layoffs are part of an ongoing efficiency campaign launched by Alphabet Inc. in September 2022, which also saw the elimination of over 12,000 jobs by January 2023. These actions come as Google faces growing challenges from AI advancements, which threaten its core business of online search.

In response, Google has introduced generative AI features across its products and unveiled its most advanced AI model to date, Gemini 2.0. Pichai expressed confidence that the new model will mark the beginning of a new "agentic era" in AI, capable of making complex decisions.

Alongside the cuts, Pichai discussed the company’s cultural shift and the need to redefine "Googleyness," a term that represents the qualities Google seeks in its employees. This change is part of Google’s effort to adapt to evolving market dynamics and strengthen its position in the AI space.