Google rolls out buyout offers in US teams as AI spending takes priority

The exit programme affects US-based teams including knowledge and information, engineering, and marketing as Google reallocates resources toward AI infrastructure development

Google app
Google app
Rahul Goreja New Delhi
3 min read Last Updated : Jun 11 2025 | 6:36 PM IST
Google on Tuesday initiated a fresh round of voluntary buyout offers across multiple US-based departments, including the knowledge and information (K&I) unit, central engineering, marketing, communications, and research teams, according to a report by CNBC. The K&I division includes major departments such as Search, Advertising, and Commerce.
 
A voluntary buyout—or voluntary exit programme (VEP)—is a financial incentive offered to employees to resign willingly, typically implemented as a cost-cutting or restructuring strategy.
 
A Google spokesperson confirmed the initiative to CNBC, stating: “Earlier this year, some of our teams introduced a voluntary exit program with severance for U.S.-based Googlers, and several more are now offering the program to support our important work ahead.”
 
However, the exact number of affected employees has not been disclosed.

'You may leave if you don't feel energised': Fox memo 

Nick Fox, who has headed the K&I unit since an October 2023 reorganisation, addressed staff in a memo urging those who feel disconnected from the company’s goals or struggling with performance expectations to consider the exit offer.
 
“I want to be very clear: If you're excited about your work, energised by the opportunity ahead, and performing well, I really (really!) hope you don't take this,” Fox wrote in the internal communication. “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 energised by your work, or are having difficulty meeting the expectations of your role.”
 
The exit programme applies only to full-time US-based employees. In addition, remote workers within 50 miles of a Google office are being asked to return to the office under a hybrid schedule.

Previous buyouts across teams 

This is not the first time Google has turned to buyouts. In January, its Platforms and Devices division—including Android, Chrome, and Pixel hardware—introduced a similar voluntary exit scheme. This was followed by the People Operations division in February, which offered mid- to senior-level staff up to 14 weeks of severance, plus one additional week per year of service. Legal and finance departments have also implemented buyout initiatives.
 
Fox noted that he reviewed earlier programmes and received positive feedback from other teams before adopting the approach for the K&I unit.

AI focus drives internal restructuring 

Google’s increased use of voluntary exits reflects its broader strategy to reallocate resources toward artificial intelligence infrastructure. The company is also investing in internal training programmes focused on deploying practical AI tools across its products.
 
Earlier this year, some employees welcomed the buyout option over abrupt layoffs. However, the buyout offers often come with return-to-office conditions. According to an April report by CNBC, some remote employees were told to resume in-office work to retain their roles and avoid further job uncertainty.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :GoogleIT industry layoffslayoffTech companiesBuyout dealsBS Web Reports

First Published: Jun 11 2025 | 6:26 PM IST

Next Story