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To cut costs, Google offers voluntary exits in search, ads, and engineering teams
Google's program, referred to as a “voluntary exit program” (VEP), is currently offered to US-based employees.
Google has offered voluntary buyouts to employees across several divisions, including its Search unit, as part of ongoing efforts to reduce its workforce, CNBC reported on Tuesday.
The buyouts have been extended to workers in various departments such as knowledge and information (K-I), central engineering, marketing, research, and communications. The K-I division includes Google’s major businesses like Search, Ads, and Commerce.
According to CNBC, the move is part of Google’s broader cost-cutting strategy, which began last year with the layoff of around 12,000 employees.
The program, referred to as a “voluntary exit program” (VEP), is currently offered to US-based employees. The exact number of employees affected by this latest offer has not been confirmed yet.
Meanwhile, some teams are requiring remote employees who live within 50 miles of a Google office to begin working in a hybrid model to encourage more in-person collaboration.
“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,” Google spokesperson Courtenay Mencini said in a statement to CNBC.
Google shifts focus on AI
The buyouts come at a time when Google is increasing its investment in artificial intelligence (AI). In October, the company’s new finance chief, Anat Ashkenazi, named cost-cutting a top priority to fund future AI infrastructure spending.
According to the report, K&I, which employs about 20,000 people, was reorganised in October, with executive Nick Fox taking charge.
In a memo viewed by CNBC, Fox encouraged employees who are not aligned with the company's direction or struggling to meet expectations to consider the buyout.
“I want to be very clear: If you’re excited about your work, energized by the opportunity ahead, and performing well, I really (really!) hope you don’t take this!" Fox wrote. "We have ambitious plans and tons to get done. On the other hand, this VEP 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.”
This year alone, Google has rolled out multiple buyout programs across different units, suggesting it is now using them as a preferred method to reduce staff while avoiding forced layoffs.
