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.