In a significant move to reshape its workforce for what executives call a “transformational moment” in artificial intelligence, Google is offering voluntary buyout packages to employees in several of its core U.S. divisions, including the critical Search and Ads teams. The “voluntary exit program” is being implemented alongside a stricter return-to-office mandate, requiring many remote workers to adopt a hybrid schedule.
This dual approach signals a strategic effort to increase efficiency and in-person collaboration as the company deepens its focus on AI, while providing a severance-backed exit for employees not aligned with the new direction.
The buyouts were announced to employees on June 10, affecting staff in the Knowledge & Information (K&I), Core, marketing, research, and communications departments. The move is the latest in a series of workforce adjustments over the past two years, suggesting a continued, albeit more targeted, approach to realignment as Google reallocates massive resources to the capital-intensive AI race.
A Google spokesperson confirmed the strategy to Business Insider, explaining that several teams are now offering the program to “support our important work ahead” and that the company is asking remote employees near an office to return to a hybrid schedule “to bring folks more together in-person.” While the company frames the move as a way to boost innovation, the strategy also creates uncertainty, as a similar buyout offer in another division earlier this year was followed by layoffs.
The Fine Print of the Reshuffle
Google’s “voluntary exit program” provides a severance package that includes a minimum of 14 weeks of salary plus one additional week for every year of service. The offer extends to U.S.-based employees in key divisions, including the 20,000-person K&I unit that houses the foundational Search, ads, and commerce teams. The enrollment deadline is reportedly July 1, 2025.
Notably, the company’s Cloud and DeepMind divisions, central to its AI ambitions, are not included in the buyout offer.
In a parallel move, Google is tightening its hybrid work policy. Remote employees in the affected teams who live within 50 miles of a company office are now required to return on a hybrid schedule, working at least three days a week in person. This expands on earlier return-to-office policies, with divisions like YouTube separately requiring US employees near an office to return by September or face termination.
‘Supportive Path’ or Warning Shot?
Internally, Google executives have carefully framed the buyouts as an opportunity for employees to leave on their own terms rather than as a traditional layoff. In a memo to staff, Jen Fitzpatrick, Senior Vice President of Core Systems, emphasized that for rapid innovation, “when it comes to connection, collaboration, and moving quickly to innovate together, there’s just no substitute for coming together in person.”
Nick Fox, head of the K&I group, described the program as a way out for employees who feel they are no longer aligned with the company’s strategy or are struggling to meet expectations, while also making a direct appeal to high-performers. In a memo obtained by CNBC, Fox stated, “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!”
Despite this messaging, the move has created an undercurrent of anxiety among staff. This precedent, where a similar buyout program offered to the Platforms and Devices division was followed by layoffs in the same unit, fueling speculation that the current VEP could be a precursor to involuntary cuts if not enough employees accept the offer.
Addressing this concern directly, Fitzpatrick’s memo included an attempt at reassurance, stating, “To be clear, this isn’t about reducing the number of people in Core. We will use this opportunity to create internal mobility and fresh growth opportunities for Core Googlers.”
A Continuing Strategy of Workforce Reduction
This latest action is part of a multi-year effort by Google to streamline its operations. The company initiated one of its largest-ever mass layoffs in early 2023, cutting 12,000 jobs. At the time, CEO Sundar Pichai explained that the company had “hired for a different economic reality”.
That major cut was followed by a series of smaller, more targeted layoffs and reorganizations throughout 2024 and early 2025, affecting its ads, HR, and Global Business Organization. Some analysts view the current buyout strategy as a more gradual and employee-centric approach to headcount management compared to the shock of the 2023 layoffs. The moves also align with earlier hints of cost-cutting from company leadership.
The High-Stakes Pivot to AI
Underpinning the entire restructuring is Google’s massive and urgent investment in artificial intelligence. The company is in a fierce race with competitors and is reallocating its resources accordingly. This strategic pivot helps explain both the need to streamline established divisions and the intense focus on retaining top AI talent.
The financial commitment is substantial. Google plans to invest approximately US$75 billion in capital expenditures in 2025, primarily to expand data center capacity for its AI initiatives. This immense spending necessitates finding efficiencies elsewhere. The current workforce changes are a direct consequence of this reallocation.
The high stakes of the AI talent war were previously highlighted in reports that Google DeepMind was offering a full year of paid ‘garden leave’ to prevent top researchers from joining rivals. This context makes the decision to now offer buyouts to employees in other core, long-standing divisions all the more significant. It reflects a company-wide realignment to support CEO Sundar Pichai’s declaration from late 2024 that “Search itself will continue to change profoundly in ’25”.
Ultimately, Google is navigating a high-wire act. It is funding a historic technological expansion by reshaping the very teams that built its empire. The official messaging focuses on energy and alignment, but the practical result is a workforce facing a choice: fully commit to the new, intense, in-office AI-first culture, or take a supportive path to the exit, all while the shadow of potential future layoffs looms.
