Google streamlines small team management as part of an efficiency drive

[Google headquarters in London, UK]
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Google (NASDAQ:GOOG [https://seekingalpha.com/symbol/GOOG]) (NASDAQ:GOOGL [https://seekingalpha.com/symbol/GOOGL]) has made fast progress on cutting back on the number of managers who oversee small teams of three people or less. The development is part of a company-wide initiative to become more efficient.

"Right now, we have 35% fewer managers, with fewer direct reports than at this time a year ago," stated Brian Welle, vice president of people analytics and performance, in a recording of an all-hands meeting that was reviewed by CNBC.

Welle told employees that a goal is for the leadership population of managers, directors, and VPs to account for a smaller percentage of Google's (NASDAQ:GOOG [https://seekingalpha.com/symbol/GOOG]) (NASDAQ:GOOGL [https://seekingalpha.com/symbol/GOOGL]) overall workforce. During the meeting, Google (GOOG [https://seekingalpha.com/symbol/GOOG]) (GOOGL [https://seekingalpha.com/symbol/GOOGL]) CEO Sundar Pichai reiterated the need for the company to be more efficient as it continues to scale up so it does not have to solve everything through headcount.

Google (GOOG [https://seekingalpha.com/symbol/GOOG]) (GOOGL [https://seekingalpha.com/symbol/GOOGL]) eliminated about 6% of its workforce in 2023. This year, Google (GOOG [https://seekingalpha.com/symbol/GOOG]) (GOOGL [https://seekingalpha.com/symbol/GOOGL]) has executed several rounds of job cuts, affecting thousands of employees across various divisions.

Shares of Google parent Alphabet inched 0.1% higher in Wednesday afternoon trading. The tech stock is up almost 8% over the last six weeks.

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