Google Introduces 'Voluntary Exit' Program to US Staff During AI Growth
Google has introduced a "voluntary exit" plan to thousands of its US staff, as the tech giant manages to adopt a phase of cost-saving when it is speeding up its investment in artificial intelligence (AI). The new buyout program focuses on employees in critical departments, such as the search unit and central engineering groups.
Strategic Buyouts During AI Revolution
In an internal memo that The Verge has seen, Google's Head of Knowledge and Information group Nick Fox outlined the voluntary departure offer as a constructive departure for employees who may not feel as connected to Google's direction today. Fox's note implies that this effort is for those who are no longer passionate or having trouble delivering on their jobs.
This is the latest in Google's move towards voluntary buyouts, after the contentious January 2023 round of layoffs that eliminated 12,000 positions. Since then, there have been a number of teams, including Pixel and Android, that have initiated similar initiatives as part of the company's continuing restructuring process.
Also Read: OpenAI Partners with Google Cloud to Boost AI Compute Capacity
AI Infrastructure Investments Lead to Cost-Cutting Measures
Jen Fitzpatrick, Google's Senior Vice President of Core Systems, also spoke to the program, referencing positive feedback from other departments that provided voluntary exit packages. She stressed that the program can be well-suited to employees who don't feel they are aligned with the company mission and strategic objectives.
Although the program is voluntary for employees to leave, Fox urged top performers to remain. "If you're passionate about your work and excited about the future opportunity, I truly hope you don't consider this!" he wrote, pointing out the high-level plans and initiatives the company is still working to achieve.
The move to offer voluntary exits comes after CFO Anat Ashkenazi’s pledge in October 2024 to focus on cost-cutting measures, particularly as Google ramps up its AI infrastructure investments in 2025. As the company works to balance AI advancements with operational efficiencies, it aims to reduce expenses while retaining top talent in crucial areas.
Alphabet, the parent organization of Google, had previously disclosed the intention to reduce 12,000 employees in January 2023, which is 6% of the employees that stood at 183,323 workers as of December 31, 2024.
