Saturday, 3 May 2025
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Restructuring in Tech: Google and Microsoft Layoff News

  • Google lays off hundreds from Android, Pixel, and Chrome teams.
  • Microsoft to reduce middle management in May restructuring.
  • Both tech giants focus on efficiency and increasing engineering ratios.

Google, under its parent company Alphabet, has laid off hundreds of employees from its Platforms and Devices division, affecting critical teams like Android software, Pixel phones, and the Chrome browser.

Microsoft is also preparing for a fresh wave of layoffs in May, with internal discussions centered around reducing layers of management and boosting the engineer-to-manager ratio.

Restructuring Storm: Google Executes Cuts, Microsoft Gears Up for May Layoffs

Alphabet’s Google has taken a major step in reshaping its workforce, cutting hundreds from its Platforms and Devices division—an area pivotal to Android, Chrome, and Pixel hardware. This follows earlier voluntary buyout attempts that failed to reduce headcount sufficiently. The cuts come amid ongoing efforts to increase agility across product teams.

Meanwhile, Microsoft is internally discussing significant workforce changes set for May. One of the key strategies involves flattening the management hierarchy, especially in departments where program or product managers outnumber software engineers. The company’s goal is to streamline workflows and elevate output by shifting focus to core developers.

The restructuring push is particularly strong in Microsoft’s security division, where leadership is working to implement a 10:1 engineer-to-manager ratio. This mirrors Amazon’s “builder ratio” philosophy, aimed at scaling innovation with minimal managerial friction. These shifts are part of a broader realignment to stay competitive and nimble in a fast-changing tech landscape.

In parallel, performance evaluations are gaining weight in determining job security at Microsoft. Employees with scores below 80 on the “ManageRewards” system face reduced incentives and a higher risk of termination. This trend reflects a shift toward performance-based workforce optimization across the tech industry.

As Google executes layoffs and Microsoft prepares for structural changes, both companies signal a clear move toward leaner, engineer-driven operations, prioritizing innovation over hierarchy.

“In the middle of difficulty lies opportunity.” — Albert Einstein

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