When you work for a company like Google, that title change determines whether or not you are taken seriously. People that get stuck at the same level are often pushed out of teams with performance improvement plans. They expect you to strive for promotion and the culture in these places is reinforcing this progression. It's mostly theater but the outcomes for people's pay is very real, thus the focus on title.
Sounds awful, spending headspace and energy on trying to climb some stupid corporate ladder.
> People that get stuck at the same level are often pushed out of teams with performance improvement plans.
Only if you get stuck at the entry level. L5, is considered terminal and no one will push you out for not going for L6.
(Google also recently 'declared' L4 a terminal position — likely so they could be stingier with L5 promotions — but what your manager considers terminal is what matters most)