Google offers buyout: Why is the tech giant paying employees to leave?

Published June 11, 2025 by Alfie
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Google is yet again restructuring its staff. This time around, rather than massive layoffs, the company is giving some of its U.S.-based employees buyouts. The buyouts come amidst Google continuously trying to cut down on expenses and pumping much investment into the area of artificial intelligence (AI). These packages provide the employees with an opportunity to walk away willingly with a few funds, as opposed to being retrenched.

Which Teams Are Affected

Employees in some of the important departments of Google are being given the new buyout offers. This comprises the Knowledge and Information group that deals with Google Search, ads, commerce, marketing, research, and central engineering teams. A number of these employees are involved in Google’s core products used by millions of individuals on a daily basis.

The Knowledge and Information group alone has approximately 20,000 workers at Google. This group contributes to the success of the company since it comprises the popular search engine business and advertising. This internal memo, sent by Nick Fox, who heads this division, announced the new buyouts.

Why Google Is Offering Buyouts

The principal cause of such buyouts is that Google is encouraging workers to reduce expenses as it increases its AI operations. The company is currently expenditure a great deal of money on enhancing its AI technology, which it thinks is vital in the future. Voluntary buyouts are considered to be a less destructive alternative to mass layoffs, which is likely to demoralize other workers.

It is not the first time Google has done such a thing. In 2023, Google dismissed 12,000 workers in a mass, unexpected action that triggered much frustration. It happened to many workers who could lose access to their work systems overnight, regardless of being one of the best employees or being on medical leave. The outcry following the previous set of layoffs compelled Google to do things differently this time.

This time, through the voluntary buyouts, the company has been trying to prevent such criticism. Those employees who do not feel excited or connected to their work anymore may go with some financial aid. The plan is named the “Voluntary Exit Program” (VEP). It is directed to individuals who do not feel on the same page with Google or are struggling to match the expectations in their positions.

Google Still Hiring in Some Areas

Although Google is cutting employees in certain groups, it is still recruiting in other places, particularly in engineering and AI. CEO Sundar Pichai has already declared that in the years to come, AI will be one of the primary focuses. The firm will expand its engineering workforce until 2026 to develop new AI-based products and services.

The chief of finance, Anat Ashkenazi, has also stated that reducing expenses is a priority as the corporation invested additional resources in its AI systems. This demonstrates that Google is attempting to juggle between financial savings and keeping up with the rapidly changing technological world.

Other Teams Also Offered Buyouts

The Knowledge and Information group isn’t the only part of Google affected by these changes. Over the past two years, several other teams have also been offered buyouts. These include the Pixel and Android divisions, legal and finance departments, human resources (known as People Operations), and the hardware unit called Platforms and Devices.

For example, earlier in 2025, the People Operations team offered mid- to senior-level employees up to 14 weeks of salary, plus one additional week for every full year they worked at Google. The company says it received positive feedback from employees who appreciated the chance to leave voluntarily rather than face sudden layoffs.

Office Return Policy Adds Pressure

The Knowledge and Information group is not the only area in Google that is impacted by these changes. Other teams have gotten buyouts in the last two years as well. These are Pixel and Android divisions, legal and finance departments, human resources (under the alias People Operations), and the hardware group Platforms and Devices.

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