Google Offers Employees Buyout, Voluntary Exit Option to Cut Cost

Google has offered several of its employees a buyout and voluntary exit option, especially those within its knowledge and information, central engineering units, marketing, research, and communications divisions. This is part of the company’s latest effort to reduce its headcount, following the layoffs of 12,000 employees in 2023.

Voluntary Exit Option

The “voluntary exit program” applies to U.S.-based employees, with some teams also mandating remote workers who live within 50 miles of an office to return to the office under a hybrid work schedule “to bring folks more together in-person.”

“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,” Google spokesperson Courtenay Mencini wrote in an emailed statement to CNBC.

The Knowledge & Information department has approximately 20,000 employees. The unit underwent a re-organization in October that resulted in Google executive Nick Fox taking over the helm. Fox sent out a memo on Tuesday saying that employees who are not meeting expectations may want to take the buyout and that those who are excited by their work and doing well to remain with the company.

“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! We have ambitious plans and tons to get done,” Fox wrote, according to the memo which was reviewed by CNBC. “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.”

Google has done multiple buyout offers in a few units this year, making it a preferred strategy to reduce headcount. “Platforms and Devices” — the company’s hardware unit that consists of 25,000 full-time employees working on Android, Chrome, ChromeOS, Google Photos, Google One and the Pixel devices — offered full-time U.S.-based employees the option to apply for a buyout in January while the “People Operations,” also known as the company’s human resources department, offered voluntary buyouts in February. Google’s legal and finance teams have also announced buyouts this year, a company spokesperson confirmed on Tuesday.

As part of the People Operations buyouts, mid to senior-level employees received severances of up to 14 weeks of salary and one additional week for every full year of service. Earlier this year, some employees praised Google’s decision to offer buyouts rather than immediately laying off employees, CNBC reported at the time.