Google has trimmed its management ranks by 10% as part of a multi-year effort to streamline operations and enhance efficiency, CEO Sundar Pichai revealed during an all-hands meeting on Wednesday. The announcement highlights the company's ongoing push to simplify its structure amidst mounting competitive pressures in the AI landscape.

According to sources familiar with the meeting, who spoke on condition of anonymity, Pichai emphasized that the changes aim to remove redundancies, reduce layers of management, and enable faster decision-making. The 10% reduction affected managers, directors, and vice presidents, with some transitioning to individual contributor roles while others faced role eliminations.

This adjustment is part of a broader efficiency initiative Pichai announced in September 2022, where he set a goal of making Google 20% more efficient. This strategy culminated in a historic wave of layoffs in January 2023, which saw 12,000 jobs eliminated—marking one of the most significant workforce reductions in the company's history.

The efficiency drive coincides with rising competition from AI rivals, particularly OpenAI, which has disrupted the industry with innovations like ChatGPT. These advancements pose a direct challenge to Google’s core search business, compelling the tech giant to double down on its AI capabilities.

Google has responded by embedding generative AI features into its flagship products and accelerating its AI development. The company recently unveiled a cutting-edge video generator and its Gemini AI models, including a "reasoning" model designed to demonstrate its thought process—both aimed at staying ahead in the fiercely competitive AI market.

Pichai underscored the importance of these efforts during the meeting, framing them as essential for Google’s long-term growth and relevance.

In a bid to align its corporate culture with the demands of a modern, efficiency-driven organization, Pichai also addressed the evolving definition of "Googleyness" during Wednesday’s meeting. The term, long associated with qualities like collaboration, creativity, and a user-first mindset, is now being updated to reflect a more streamlined and agile approach.

This cultural shift, coupled with structural changes, aims to ensure that Google remains competitive while fostering innovation in a rapidly changing tech landscape.

The reorganization reflects the dual pressures Google faces: adapting to a fast-evolving AI ecosystem while maintaining its leadership position in search and advertising. By cutting managerial layers, Google seeks to create a leaner, more responsive structure capable of pivoting quickly to meet new challenges.

However, these moves also raise questions about morale and the impact of ongoing changes on the broader workforce. Pichai’s acknowledgment of these challenges suggests that Google is attempting to strike a balance between efficiency and retaining its hallmark values.

As Google continues to navigate the complexities of AI competition and internal restructuring, the effectiveness of these measures will be closely watched—not only by its workforce but also by the broader tech industry.