Latest news with #VoluntaryExitProgram
Newsweek
2 days ago
- Business
- Newsweek
Google Buyouts Offered Amid Tech Industry Layoffs
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Google has extended a new round of buyouts to its U.S. employees across several core divisions, including its search, ads, and commerce units. The initiative is part of Google's effort to manage headcount following major staff reductions last year. Affected teams also include central engineering, marketing, research, and communications. Newsweek has contacted Google via email for comment. Why It Matters The announcement comes during a surge in technology sector layoffs in Silicon Valley, where companies continue to adjust workforce levels due to economic pressure and rising investment in artificial intelligence. These developments show how volatile tech employment is right now, and how the leading tech companies are implementing structural and market changes. What To Know Google introduced the buyout, named a Voluntary Exit Program, in response to ongoing cost-cutting and restructuring goals. The program is open to select U.S.-based employees in the Knowledge and Information unit (which includes search, ads, and commerce), central engineering, marketing, research, and communications, as outlined in an internal memo reported by CNBC. Employees choosing the buyout will receive a severance package, with Google leadership describing the policy as "a supportive exit for those not aligned with the company's strategy." Google also adjusted its remote work policy, requiring affected remote employees living within 50 miles of a Google office to return for a hybrid work schedule. A spokesperson for Google told Newsweek that this was not a company-wide policy and was team-specific. A Google corporate logo hangs above the entrance of their St. John's Terminal office on May 19, 2025, in New York City. A Google corporate logo hangs above the entrance of their St. John's Terminal office on May 19, 2025, in New York City. Getty Images The buyouts at Google mirror staff reductions across the technology sector. LinkedIn, Chegg, and Hewlett Packard Enterprise (HP) collectively notified California authorities of over 400 job cuts in May 2025. Google previously laid off 12,000 employees in early 2023, which made up around 6 percent of its global workforce. Recent buyouts have also targeted divisions such as hardware, human resources, legal, and finance. The company has described buyouts as a more humane alternative to layoffs, following staff pushback and declining morale last year. The organization is also realigning its training programs to focus on essential skills related to artificial intelligence. What People Are Saying Courtenay Mencini, a Google spokesperson, told Newsweek: "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. "A number of teams are also asking remote employees who live near an office to return to a hybrid work schedule in order to bring folks more together in-person." What Happens Next Google will continue implementing buyouts through designated enrollment periods.
Business Insider
2 days ago
- Business
- Business Insider
Alphabet's Google Offers Buyouts to U.S. Staff Amid AI Push
Tech giant Alphabet (GOOGL) is offering buyouts to U.S. employees within some of its core teams. Google sent an internal memo yesterday informing staff about the buyouts, which apply to its Knowledge and Information (K&I), central engineering, marketing, research, and communications teams. Meanwhile, employees from DeepMind, Google Cloud, YouTube, and central ad sales are excluded from the buyout offer. Confident Investing Starts Here: Google is focused on ramping up its artificial intelligence (AI) ambitions and seeks to reduce costs and avoid ugly layoffs through these measures. Alphabet has set a massive $75 billion capex budget for AI infrastructure this year. The buyouts come as a prelude to potential layoffs, as earlier experiences have shown that employees prefer being offered buyouts rather than being laid off instantly. Google Tightens Return-to-Office Policy with Buyouts Along with the buyouts, Google has also mandated that employees who live near the office return to a hybrid work model. A buyout is a Voluntary Exit Program (VEP) offered to certain employees, allowing them to choose whether or not to accept the offer. In its memo, Google said that employees who are excited about their work and feel energized and motivated are encouraged to continue working at the company. In contrast, those 'having difficulty meeting the expectations of your role' could opt to take the package. Google is reportedly offering staff up to 14 weeks of severance, and the offer will be available through July 1. Notably, Google's K&I team includes some of its most popular functions, including those of Search, Ads, and Commerce teams. The decision to cut staff within the K&I team could be related to Google's loss in a landmark antitrust case alleging dominance in Search and Ad Tech. Google awaits the remedial decision in both cases, with one possible outcome being the divestiture of both units. Google resorted to mass layoffs in 2023, cutting roughly 6% of its workforce. The company faced severe criticism for this step and has since decided to rely on VEPs or buyouts for future workforce reductions. Until now, Google has downsized staff in its Pixel, Chrome, Android, Assistant, HR, Finance, and Legal teams. It remains to be seen whether Google undertakes another round of layoffs from these teams in the future. Is GOOGL Stock a Buy or Sell? On TipRanks, GOOGL stock has a Strong Buy consensus rating based on 27 Buys and nine Hold ratings. Also, the average Alphabet price target of $198.50 implies 11.1% upside potential from current levels. Year-to-date, GOOGL stock has lost 5.4%.
Time of India
2 days ago
- Business
- Time of India
Google offers buyouts to employees who 'aren't feeling excited about …
Google is offering buyouts to thousands of US-based employees across multiple divisions, including its sprawling Search organization and core engineering teams, as the tech giant continues its cost-cutting efforts amid massive AI investments. The "Voluntary Exit Program" targets employees in Google's Knowledge and Information group, which houses Search, ads and commerce operations, along with marketing, research, and core engineering divisions. Nick Fox, head of Google's Knowledge and Information group, said in an internal memo obtained by The Verge that the program offers "a supportive exit path for those of you who don't feel aligned with our strategy, don't feel energized by your work, or are having difficulty meeting the expectations of your role." Google's buyout offer is latest in the series of workforce reduction The buyouts represent Google's preferred method of reducing headcount following backlash from its January 2023 layoffs that eliminated 12,000 positions. Multiple divisions have offered similar voluntary exit programs throughout 2024 and 2025, including the Pixel and Android units earlier this year. Jen Fitzpatrick, Senior Vice President of Core Systems, explained in a separate memo viewed by Business Insider that "we've seen positive feedback across the company in other orgs who have offered similar programs." She added that the voluntary program "may be a fit for Core Googlers who aren't feeling excited about and aligned with Core's mission and goals." Fox emphasized that high-performing employees should remain, stating: "If you're excited about your work, energized by the opportunity ahead, and performing well, I really (really!) hope you don't take this! We have ambitious plans and tons to get done." Strategic cost-cutting amid continued engineering hiring The voluntary exit programs align with finance chief Anat Ashkenazi's October statement that driving cost cutting would be a top priority as Google expands AI infrastructure spending in 2025. And the same is happening this year as the company balances reducing operational costs with maintaining talent in critical areas. Despite the widespread buyouts, CEO Sundar Pichai recently reaffirmed Google's commitment to continue hiring engineers through 2026, positioning AI as "an accelerator" rather than a replacement for human talent. Speaking at the Bloomberg Tech conference, Pichai emphasized that the company expects to "grow from our current engineering base even into next year" to capitalize on emerging technology opportunities. This dual approach suggests Google is selectively reducing headcount in certain divisions while simultaneously investing in AI-focused engineering talent, reflecting the company's broader strategy to streamline operations while maintaining competitive advantage in artificial intelligence development. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Insider
3 days ago
- Business
- Business Insider
Read the memo: Google cracks down on RTO mandate and offers buyouts to some US-based employees
Google expanded its return-to-office mandate and offered voluntary buyouts for some US-based employees on Tuesday, according to an internal memo viewed by Business Insider. Employees on Google's Core, Marketing, Research, Knowledge & Information (K&I), and Communications teams all received the buyout offers. K&I includes teams working on Search, ads and commerce. The return-to-office requirement expands the company's 2022 RTO mandate, which asked some US-based teams to come into the office 3 days a week, while still offering " work from anywhere" weeks. The company will now require all remote employees on affected teams who live within 50 miles of an office to return to the office on a hybrid schedule. "Earlier this year, some of our teams introduced a voluntary exit program with severance for US-based Googlers, and several more are now offering the program to support our important work ahead," Courtenay Mencini, a Google spokesperson, told Business Insider in a statement. "A number of teams are also asking remote employees who live near an office to return to a hybrid work schedule in order to bring folks more together in-person." Business Insider could not immediately confirm how many Google employees would be affected by the buyout offer or expanded return-to-office mandate. In 2023, Google CEO Sundar Pichai announced the company was laying off around 12,000 staff, or 6% of its global workforce, in sweeping cuts across its product areas and regional teams. Google conducted additional rounds of layoffs in 2024, affecting its Treasury, Business Services, and Revenue Cash Operations teams. It's unknown if the latest buyout offers mean more layoffs are coming. Earlier this year Google offered buyouts for staff in its Pixel and Android unit. It had layoffs in that same division a few weeks later. Below is the full memo sent to Google employees on Tuesday by Jen Fitzpatrick, the Senior Vice President of Core Systems at Google. Hi everyone, As I mentioned at The Source last month, there's a ton of exciting and important work for us here in Core, especially as AI is reshaping everything - our products, our tools, the way we work, how we work, how we innovate and so on. To meet this transformational moment, we need everyone to show up with an unparalleled sense of energy and enthusiasm for Core's mission, connecting and collaborating at speed so that we can tackle all of the ambitious work we need to do. In support of these goals, we're introducing two programs today for US-based Core Googlers: We're offering a Voluntary Exit Program (VEP) for Core Googlers in the US (in my reporting org). We've seen positive feedback across the company in other orgs who have offered similar programs, and I wanted to extend the same option to eligible Core Googlers in the US who would like to leave the company voluntarily with severance. The Voluntary Exit Program may be a fit Core Googlers who aren't feeling excited about and aligned with Core's mission and goals, or those who are having difficulty meeting the demands of their role. Additionally, how we work today is more flexible than it's ever been with our 3/2 hybrid work policy. But when it comes to connection, collaboration, and moving quickly to innovate together, there's just no substitute for coming together in person. In Core, we believe that having more Googlers in the office collaborating and innovating together while building community and connection that supports our culture is an important part of our success as an org, and as a company. That's why we're updating our work location policy for local remote Core Googlers in the US and asking all US-based Core Googlers who are remote and live within 50 miles of an approved return site ("local remote") for Core to transfer back to a return site on a 3/2 hybrid schedule. We want to ensure Core Googlers are fully committed to being here and actively contributing. These programs will help us be even more focused on our mission and will enable us to operate with greater velocity, efficiency and collaboration. To be clear, this isn't about reducing the number of people in Core. We will use this opportunity to create internal mobility and fresh growth opportunities for Core Googlers. We'll follow up with VEP details for all eligible US Core Googlers, and location transfer information for US Remote Googlers meeting the criteria above shortly. We have a huge opportunity ahead of us - to deliver on our mission to make Google work better for everyone, and at scale - and to do so in a moment of transformational innovation. Let's stay focused, work hard, and build on the incredible momentum underway.
