Google has initiated a major restructuring of its management hierarchy, eliminating over one-third of its managerial roles across key divisions.
The move, which began in August 2025 and continues into early 2026, is part of CEO Sundar Pichai’s broader strategy to streamline operations, reduce bureaucracy, and improve decision-making speed as the company intensifies its focus on artificial intelligence and cost efficiency.
The restructuring primarily affects managers overseeing small teams and those in the Google Customer Solutions (GCS) division, which handles advertising sales for midsize clients.
According to internal communications and executive briefings, the company is removing the “managers of managers” layer to flatten its organizational structure and accelerate execution.
Google Ad Sales Division Undergoes Major Overhaul
One of the most significant changes is taking place within Google’s U.S. advertising sales unit.
The GCS division, which manages a portfolio comparable in size to a Fortune 100 company, is eliminating an entire layer of middle managers.
These roles previously served as intermediaries between senior leadership and frontline teams.
John Nicoletti, Vice President at Google, described the restructuring as a necessary step to improve agility and responsiveness in a competitive ad market.
The changes are expected to take effect in January 2026, with affected managers transitioning to other roles or exiting the company.
Small-Team Managers Face Cuts Across Functions
Beyond the ad sales unit, Google has reduced managerial roles in other departments as well. The cuts mainly affect managers overseeing teams with fewer than three members.
This decision was announced during an all-hands meeting in late August. Executives emphasized the need for leaner operations and more direct accountability.
The company has not disclosed the exact number of roles eliminated.
However, multiple reports confirm that approximately 35 percent of small-team managers have been impacted.
The restructuring reflects a growing trend in the tech industry to flatten hierarchies and reduce layers of oversight.
Efficiency and AI Investment Drive the Restructuring at Google
Sundar Pichai has emphasized the need for greater efficiency at Google. The company is scaling its operations and investing heavily in artificial intelligence.
The company is reallocating resources toward high-impact areas such as AI development, cloud infrastructure, and advanced analytics.
In internal communications, Sundar noted that the restructuring is not solely a cost-cutting measure.
He described it as a strategic shift to empower teams to make decisions quickly and operate with greater autonomy.
The goal is to foster a more agile organization capable of responding to market changes and technological advancements.
Employee Reactions and Transition Plans
The layoffs have sparked concern among employees, particularly those in middle management roles.
Google reportedly informed affected staff through virtual meetings. The company has offered limited details about severance packages or transition support.
However, the company has acknowledged the contributions of impacted employees and emphasized that the decision was made with careful consideration.
While some managers will be reassigned to new roles, others may face job displacement.
Google has indicated that it will continue evaluating its organizational structure. It plans to make adjustments as needed to support long-term growth.
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