Google launches a company-wide voluntary separation buyout program involving core business departments such as Search

According to reports, Google (GOOGL.US) offered voluntary severance packages to employees in multiple business units on Tuesday, involving the Knowledge & Information department, Core Engineering department, as well as marketing, research, and public relations teams. The Knowledge & Information department (K&I) encompasses Google Search, advertising, and commercial business segments. This is Google's latest move to continue reducing its workforce through multiple rounds of adjustments following the layoff of 12,000 employees in 2023.

The specific number of employees involved in this round of buyouts has not yet been confirmed. Earlier reports indicated that Google had offered buyout packages to employees in the Search and Advertising departments.

Google confirmed that this "voluntary departure program" applies to U.S. employees, and some teams have also requested remote employees living within 50 miles of the office to return to the workplace. The company hopes to "promote closer in-person collaboration among employees" through a hybrid work model.

Google spokesperson Courtenay Mencini wrote in an email statement: "Earlier this year, some teams launched voluntary departure programs with severance for U.S. employees, and now more teams are supporting our important future work through this program."

The K&I department has approximately 20,000 employees. This department underwent restructuring last October, ultimately being taken over by Google executive Nick Fox. In a memo on Tuesday, Fox noted that employees whose performance has not met expectations may consider accepting the buyout, while those who are passionate about their work and perform well should stay.

According to the memo, Fox wrote: "I must be clear: If you are passionate about your work, excited about future opportunities, and performing well, I sincerely hope you do not choose to leave! We have ambitious plans and a lot of work to do. On the other hand, for those who do not align with the company's strategy, lack enthusiasm for their work, or struggle to meet job requirements, this program provides a dignified exit path."

Before the introduction of this buyout plan, Google CFO Anat Ashkenazi stated last October that one of her top priorities was to drive further cost reductions as the company increases its investment in AI infrastructure by 2025.

Additionally, other reports indicate that Google is overhauling its internal popular learning platform, focusing on teaching employees how to use modern AI tools in their work, shifting from "nice-to-have" projects to more business-critical content.

Buyouts as a "New Type of Layoff"

Buyouts have become Google's preferred strategy for workforce reductions across multiple departments this year.

In January, the Platforms & Devices department (P&D)—which has 25,000 full-time employees and is responsible for Android, Chrome, ChromeOS, Google Photos, Google One, and Pixel devices—opened buyout applications to U.S. full-time employees; in February, the Human Resources department ("People Operations" team) launched a voluntary buyout program; a Google spokesperson confirmed on Tuesday that the legal and finance teams have also announced related plans this year.

In the Human Resources department's buyout program, mid-level and senior employees can receive up to 14 weeks of salary compensation, with an additional week for each year of service Fox stated in a memo on Tuesday that he has been "closely monitoring" buyout proposals from other departments and decided to follow up after receiving positive feedback.

Google's move stems from the controversy triggered by a 6% layoff in January 2023. At that time, employees reported that their access to company systems was suddenly cut off, and some long-serving, high-performing employees or those on medical/maternity leave were laid off.

Despite the company's strong performance, the suddenness of the mass layoffs led to a decline in employee trust and morale, and executives later acknowledged the impact on team atmosphere.

According to previous reports, some employees expressed approval of Google's decision to offer buyouts instead of direct layoffs earlier this year.

One employee wrote in an internal forum: "The email from the P&D department signals layoffs, which is certainly bad, but offering buyout options first is what we had called for and is the right approach."

It is worth noting that buyout plans often come with a return-to-work requirement. In April of this year, reports indicated that Google required some remote employees to return to the office if they wanted to retain their positions and avoid being included in mass cost-cutting measures