Google CEO Sundar Pichai has announced a reduction of 10% of managerial positions, including directors and vice presidents, as the company seeks to streamline its operations amidst growing competition from AI companies like OpenAI.

Pichai explained that Google has been making efforts in recent years to increase efficiency and simplify its organizational structure. The job cuts include both role eliminations and transitions of some positions to individual contributor roles, according to a Google spokesperson.

This move follows a broader strategy for efficiency, which Pichai emphasized in September 2022, aiming for Google to be 20% more efficient. This goal was partially realized in January 2023 when the company laid off 12,000 employees. The current layoffs are part of a continued effort to align with the competitive pressure from AI firms, such as OpenAI, which is launching products that could impact Google’s search business.

In response, Google has integrated generative AI features into its core products, including a new AI video generator to compete with OpenAI’s offerings, as well as its Gemini models, which include a new “reasoning” model that displays its decision-making process.

Furthermore, Pichai recently addressed the concept of “Googleyness” in a company-wide meeting, urging staff to adapt to the evolving needs of the modern Google. In May 2024, Google cut 200 jobs from its “core team,” which focuses on the technical foundation of the company’s flagship products, including user safety and global IT infrastructure. As part of the restructuring, some roles were relocated overseas, and 50 engineering positions were cut in California.