Google has announced a voluntary buyout program for employees in its “Platforms and Devices” unit.
This division encompasses over 25,000 full-time employees who work on a wide range of products, including Android, Chrome, Google Photos, Pixel, and Fitbit.
The program is part of Google’s broader strategy to streamline its operations.
The company is focusing on cost-cutting measures as it increasingly prioritizes artificial intelligence development.
The voluntary exit plan is offered to full-time employees in the United States, although the exact number of U.S.-based employees in the “Platforms and Devices” unit is unclear.
In a memo to employees, Rick Osterloh, Senior Vice President of Platforms and Devices, explained:
“This gives eligible P&D Googlers in my direct-reporting org the ability to voluntarily leave the company with a severance package.”
The initiative allows employees to leave voluntarily, with a severance package.
Osterloh described the buyout program as a “right next step” for the division, aiming to “operate with more efficiency and velocity,” particularly as the company seeks to manage costs while keeping its focus on expanding AI infrastructure.
Context for the Cuts
The buyouts are seen as part of a larger move within Google to reduce operational costs while ramping up investment in artificial intelligence.
- In a statement made in October, Google’s new CFO, Anat Ashkenazi, emphasized that cost-cutting would be a priority as the company expands its AI initiatives in 2025 referring to further cost-cutting measures.
“Any organization can always push a little further and I’ll be looking at additional opportunities,” She stated.
- A Google spokesperson confirmed the buyout program, noting that it follows the April restructuring of the Android and Pixel divisions, which the company believes will help in driving the necessary momentum for future projects.
“There’s tremendous momentum on this team and with so much important work ahead, we want everyone to be deeply committed to our mission and focused on building great products, with speed and efficiency,” they said.
Employee reactions
While the announcement has triggered concerns about potential layoffs, some employees have expressed approval for the voluntary nature of the buyouts. In an internal post seen by CNBC, one employee wrote:
“The P&D email portends layoffs, which sucks but offering buyouts first is what we asked for, is the right thing to do, and Rick deserves a lot of credit for delivering.”
The sentiment among employees has been supportive of the company’s decision to offer buyouts as an initial step, rather than immediately resorting to layoffs.
Implications for Google and Its Workforce
The buyout program is set to close on February 20, with employees who choose to enroll receiving confirmation of their acceptance by March 25.
The program is tailored for those who may be struggling to meet the demands of the hybrid work environment or whose personal goals no longer align with the division’s evolving priorities.
