Google rolls out buyout offers in US teams as AI spending takes priority

Business Standard

a day ago

Google on Tuesday initiated a fresh round of voluntary buyout offers across multiple US-based departments, including the knowledge and information (K&I) unit, central engineering, marketing, communications, and research teams, according to a report by CNBC. The K&I division includes major departments such as Search, Advertising, and Commerce.
A voluntary buyout—or voluntary exit programme (VEP)—is a financial incentive offered to employees to resign willingly, typically implemented as a cost-cutting or restructuring strategy.
A Google spokesperson confirmed the initiative to CNBC, stating: 'Earlier this year, some of our teams introduced a voluntary exit program with severance for U.S.-based Googlers, and several more are now offering the program to support our important work ahead.'
However, the exact number of affected employees has not been disclosed.
'You may leave if you don't feel energised': Fox memo
Nick Fox, who has headed the K&I unit since an October 2023 reorganisation, addressed staff in a memo urging those who feel disconnected from the company's goals or struggling with performance expectations to consider the exit offer.
'I want to be very clear: If you're excited about your work, energised by the opportunity ahead, and performing well, I really (really!) hope you don't take this,' Fox wrote in the internal communication. 'On the other hand, this VEP offers a supportive exit path for those of you who don't feel aligned with our strategy, don't feel energised by your work, or are having difficulty meeting the expectations of your role.'
The exit programme applies only to full-time US-based employees. In addition, remote workers within 50 miles of a Google office are being asked to return to the office under a hybrid schedule.
Previous buyouts across teams
This is not the first time Google has turned to buyouts. In January, its Platforms and Devices division—including Android, Chrome, and Pixel hardware—introduced a similar voluntary exit scheme. This was followed by the People Operations division in February, which offered mid- to senior-level staff up to 14 weeks of severance, plus one additional week per year of service. Legal and finance departments have also implemented buyout initiatives.
Fox noted that he reviewed earlier programmes and received positive feedback from other teams before adopting the approach for the K&I unit.
AI focus drives internal restructuring
Google's increased use of voluntary exits reflects its broader strategy to reallocate resources toward artificial intelligence infrastructure. The company is also investing in internal training programmes focused on deploying practical AI tools across its products.
Earlier this year, some employees welcomed the buyout option over abrupt layoffs. However, the buyout offers often come with return-to-office conditions. According to an April report by CNBC, some remote employees were told to resume in-office work to retain their roles and avoid further job uncertainty.