Google Implements Cost-Cutting Measures Amid Strong Revenue Performance

Google has initiated significant cost-reduction strategies across multiple divisions in 2025, including a 35% reduction in managerial roles overseeing teams of three or more. Vice President Brian Welle confirmed the streamlined structure, noting rapid progress in operational efficiency.

Voluntary exit programs have been offered since January, aligning with CFO Anat Ashkenazi's commitment to sustained cost discipline. These measures persist despite Alphabet's robust Q2 2025 revenue of $496.4 billion, signaling strategic prioritization over short-term financial performance.

The austerity drive coincides with deteriorating publisher relationships. Digital Content Next reports a 10% decline in Google Search referral traffic to publishers between May-June 2025, with non-news brands experiencing a steeper 14% drop. Major outlets including Business Insider and CNN face amplified traffic erosion according to SimilarWeb data.