Tech giant Google (GOOGL) has cut over one-third of its managers who led small teams as part of its plan to become more efficient. Indeed, Brian Welle, Google’s VP of People Analytics, told employees at a recent meeting that the company now has 35% fewer managers with small teams compared to last year. These changes are being made to reduce unnecessary layers of management and help Google operate more smoothly. Unsurprisingly, CEO Sundar Pichai added that the company wants to grow without simply adding more people.
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In addition to cutting some management roles, Google has offered voluntary buyouts in 10 departments, such as search, hardware, and HR. These buyouts are called the Voluntary Exit Program (VEP), and about 3% to 5% of employees in those teams have accepted them so far. Interestingly, Fiona Cicconi, Google’s Chief People Officer, said that many people who took the offer wanted a break from work or needed time to care for family members.
Pichai said that the buyouts were based on feedback from employees who preferred this option over large-scale layoffs, and that the program has been successful in giving workers more control over their decisions. During the meeting, employees also asked if Google would offer a paid sabbatical like Meta’s (META) “recharge” program, which gives employees a month off after five years. However, Google isn’t planning to offer a similar policy and believes that its current vacation and leave options are already strong.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GOOGL stock based on 27 Buys and nine Holds assigned in the past three months. Furthermore, the average GOOGL price target of $217.25 per share implies 4.6% upside potential.
