Google has taken a significant step this week to reshape its U.S.-based workforce, announcing voluntary buyouts across several key divisions including its Knowledge and Information (K&I) unit, central engineering, marketing, research, and communications teams. This move, revealed in internal memos on Tuesday, June 10, 2025, comes amid ongoing efforts to streamline operations while accelerating innovation, particularly around artificial intelligence (AI).
The K&I division, which encompasses Google’s search, ads, and commerce teams, is at the heart of this restructuring. With about 20,000 employees, this unit underwent a major reorganization in October 2024 when Nick Fox assumed leadership. Fox’s memo emphasized that the voluntary exit program (VEP) is designed to support employees who no longer feel aligned with Google's strategic direction or energized by their work. “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. “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 latest buyout initiative is part of a broader pattern at Google. Since CEO Sundar Pichai’s announcement in early 2023 of layoffs affecting roughly 12,000 employees—about 6% of its global workforce—the company has continued to adjust its headcount through waves of layoffs and buyouts. In 2024, layoffs targeted teams in Treasury, Business Services, and Revenue Cash Operations, while earlier this year, buyouts were offered to employees in the Pixel and Android units, followed by layoffs in that division weeks later.
Google spokesperson Courtenay Mencini confirmed that some teams had introduced voluntary exit programs with severance earlier in 2025, and more are now offering these programs to “support our important work ahead.” According to Mencini, “A number of teams are also asking remote employees who live near an office to return to a hybrid work schedule in order to bring folks more together in-person.” This marks an expansion of Google’s 2022 return-to-office (RTO) mandate, which previously required certain U.S.-based teams to be in the office three days a week, supplemented by “work from anywhere” weeks.
The updated policy now requires all remote employees on affected teams who live within 50 miles of a Google office to return to a hybrid schedule, generally three days in the office and two remote. Jen Fitzpatrick, Senior Vice President of Core Systems, highlighted this in her memo, stressing the irreplaceable value of in-person collaboration. “When it comes to connection, collaboration, and moving quickly to innovate together, there’s just no substitute for coming together in person,” Fitzpatrick wrote. She also clarified that this policy change is not intended to reduce headcount but to foster internal mobility and fresh growth opportunities within Core.
While the voluntary exit program offers severance packages of at least 14 weeks’ salary—with some employees eligible for additional weeks based on tenure—the program is not a layoff. Instead, it is framed as an exit path for employees who may be struggling to meet the demands of their roles or who feel disconnected from the company’s evolving mission, particularly as AI reshapes Google's products and work culture.
This strategic shift aligns with Google’s increased investment in AI infrastructure. In October 2024, finance chief Anat Ashkenazi identified cost-cutting as a priority to free up resources for AI expansion. Google has rolled out AI features such as AI Overviews in Search, expanded AI Mode access, automated ad tools, and Gemini investments, alongside announcing a $32 billion acquisition of Wiz, a cloud-native cybersecurity firm focused on AI and multi-cloud security.
Google’s approach to workforce management this year has favored buyouts over abrupt layoffs, likely in response to backlash from the January 2023 layoffs. That round faced criticism for its suddenness and the impact on morale, with some employees abruptly losing access to company systems, including those on medical or maternity leave. Since then, buyout programs have been introduced in various divisions, including Platforms and Devices (covering Android, Chrome, Pixel, and more) in January and People Operations (human resources) in February, with legal and finance teams also offering buyouts.
Nick Fox’s memo underscores that Google continues to hire where needed and expects to backfill many roles vacated through buyouts, signaling that the company is not shrinking but rather refining its talent pool to meet new challenges. Fox also announced relocation support for local remote employees who must return to office sites, reflecting Google’s commitment to maintaining a collaborative culture.
Yet, the requirement for remote employees within commuting distance to return to offices is not without controversy. Some employees have expressed concerns about the loss of flexibility, especially after the pandemic normalized remote work. However, Google’s leadership insists that in-person collaboration is critical for innovation velocity and cultural cohesion.
Google’s parent company, Alphabet, saw its shares climb about 1% on Tuesday, June 10, 2025, despite a 5% decline so far in 2025. Investors appear cautiously optimistic about these structural changes and Google’s AI-driven growth prospects.
As Google navigates this transformational moment, balancing cost control, workforce alignment, and AI innovation, its evolving policies reflect a tech giant adapting to a new era. The voluntary exit programs and expanded return-to-office mandates signal a company intent on fostering a focused, collaborative workforce ready to build the future of AI-powered products and services.
