Google Is Slashing Headcount by Offering Voluntary Buyouts to Employees

Google has extended voluntary buyout offers to employees in several important divisions, including search, ads, and marketing, as part of its ongoing efforts to slash headcount.

CNBC reports that Google has taken another step in its quest to cut down on its number of human employees, known as “Googlers.” On Tuesday, the company announced voluntary buyout offers to employees across multiple divisions, signaling a continuation of its headcount reduction strategy that began with the layoff of 12,000 employees in 2023.

The divisions impacted by the latest round of buyouts include the company’s knowledge and information (K&I) unit, which houses Google’s search, ads, and commerce divisions, as well as the central engineering, marketing, research, and communications teams. The exact number of employees affected by the buyouts remains undisclosed.

Google spokesperson Courtenay Mencini confirmed the “voluntary exit program” applies to U.S.-based employees, with some teams also mandating office returns for remote workers living within 50 miles of an office. These employees will be expected to adopt a hybrid work schedule to foster more in-person collaboration.

The K&I unit, which has approximately 20,000 employees, recently underwent a reorganization in October, resulting in Google executive Nick Fox taking over the helm. In a memo sent out on Tuesday, Fox encouraged employees who are excited about their work and performing well to remain with the company, while suggesting that those not meeting expectations or feeling misaligned with the company’s strategy may want to consider the buyout offer.

The buyouts come on the heels of CFO Anat Ashkenazi’s statement in October, emphasizing the need for further cost-cutting measures as Google expands its spending on artificial intelligence infrastructure in 2025. The company is also revamping its popular internal learning platform to focus on teaching employees how to use modern AI tools in their work, shifting away from some nice-to-have programs to more business-essential offerings.

Google has increasingly favored buyouts as a means to reduce headcount, with several units, including the “Platforms and Devices” hardware division, “People Operations” (human resources), legal, and finance teams, offering voluntary buyouts earlier this year. This approach comes after the company faced criticism for its abrupt layoffs in January 2023, which impacted long-time employees, top performers, and those on medical or maternity leave.

The pivot to buyouts has been met with mixed reactions from employees. While some praise the company for offering buyouts before resorting to layoffs, others have expressed concern over the accompanying demands, such as the requirement for remote employees to return to the office to keep their jobs and avoid being part of broader cost cuts.

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