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Indian Express
21-06-2025
- Business
- Indian Express
Are buyouts the new layoffs? Why big tech is quietly paying workers to leave
With no signs of layoffs slowing down, the tech industry is undergoing a seismic shift. In recent months, big tech companies have been axing jobs faster and quieter than ever. During the pandemic, terms like 'quiet quitting' and 'rage applying' entered the HR glossary, reflecting how employee-employer dynamics were rapidly evolving. Companies of all sizes laid off millions worldwide in highly publicised waves. But the current spate of layoffs seems different. What was once cloaked in drama and headline-grabbing layoffs seems to be becoming quick and discrete. The layoffs today are swift and subtle; companies are implementing voluntary buyout programmes that allow them to reduce headcounts and at the same time maintain a semblance of stability. Each layoff by big tech is followed by verbose justification that does very little to conceal the abject reality of the situation – people are losing jobs. Based on recent reports, economists are estimating that about one-third of resignations in Silicon Valley this year may not be voluntary but negotiated with compensation. Big tech like Google and Amazon have been reportedly paying extra weeks of salary to discreetly sack those deemed 'misaligned' employees. This signals a fundamental shift in how the tech industry is managing workforce reduction at a time when AI is rapidly advancing and virtually taking over newer domains of work that once needed human expertise. Looking at the last few years, tech companies have experimented with almost every method in the book to reduce their workforce. While earlier approaches included sudden mass layoffs, performance improvement schemes aimed at forcing resignations, and even hiring freezes for extended periods of time, things are changing now. Instead of ostentatious layoffs that would likely lead to negative publicity and likely legal challenges, big tech seems to be resorting to voluntary exit packages or buyouts that are discreet. Buyouts are when a company offers a voluntary severance package to employees, encouraging them to leave jobs. Google seems to be leading this shift. Earlier this month, it was reported that the Alphabet Inc. company was offering buyouts to staff across several divisions. This time the company did not reveal the number of employees impacted. These buyouts were offered to employees from knowledge and information, central engineering units, and even from the core search and advertising units which are critical to the company's profits. According to an internal memo to staff, Google executive Nick Fox informed that employees who were not meeting expectations may want to take the buyout, and those who are excited by their work will continue with the company. The buyout from Google seems to be offering generous severance packages to employees considered misaligned with its AI-focused roadmap. This comes after Google's massive layoffs in 2023 that impacted over 12,000 employees. Even though they are quiet, the scale of these layoffs remains massive. According to a site that tracks tech layoffs in real realtime, so far 141 tech companies have laid off 62,832 employees in the first half of 2025. While the volume of layoffs hasn't changed much, what has changed indeed is the pace. From one-day mass layoffs to now, the industry has adopted a workforce reduction that is essentially spread over months. And these come dressed in fineries such as 'workforce realignment', 'organisational restructuring', 'talent mobility', etc. Google launched its voluntary exit programme earlier this year, and it was reportedly aimed at around 25,000 employees who were involved with developing the company's operating systems. As part of the programme, eligible US-based employees would receive around 14 weeks of base pay plus one additional week for each year of service, along with accelerating stock vesting (a process where an employee gains full rights over their stock options of shares offered by the company) and six months of health coverage. The programme seems to be expanding steadily, as earlier this month it was extended to the Knowledge and Information group that has about 20,000 employees. From Google's perspective, employees who accept buyouts are statistically less productive under the AI-centric approach. Moreover, the cost of severance packages is lower than keeping 'misaligned' employees on payroll forever. Reportedly, voluntary exits facilitate staff cuts with minimal hassle, as they involve less documentation, almost no lawsuits, and a defined exit budget. It is not just Google; more companies are following suit. Reportedly, Microsoft is offering 16 weeks of salary to low-performing employees who opt for voluntary exit. On the other hand, Amazon was among the first to introduce a three-month salary package to employees resisting work-from-office mandates. While there is a cost to companies with buyouts, big tech seems to be viewing these voluntary exits as more profitable than forced resignations, which could also lead to lawsuits, demoralisation among staff, and damage to goodwill and reputation. For companies the rationale moves beyond cost savings. Some experts feel that severance packages could free up the budget to hire AI talent that require premium pay packages. Reportedly, Microsoft pays AI engineers up to $375,000 annually, which is substantially higher than standard developers. For senior staff, buyouts afford them the resources they need during the job search. However, younger staff with minimal tenure receive smaller severance packages and are thrust into an oversaturated market. Employees accepting buyouts may be higher, since there is a lack of clarity on exact numbers. For high-performing employees, these severance packages may help them embark on their startup journeys. While buyout packages allow companies to cut costs while maintaining employee morale, their risks include uneven loss of critical talent and disruption in alignments within teams. As of today, there are AI-driven efficiency pressures, and more roles seem to be becoming obsolete, pushing companies to push for voluntary exits. This could signal a future of lean hybrid workforces with fewer permanent roles, and continuous reskilling and employee adaptability becoming a necessity. With AI continuing to automate various functions, companies will be compelled to reconfigure their workforces. In an alternative scenario, if talent becomes scarce, companies may have to switch back to retention packages. This quiet restructuring is changing thousands of career paths, yet its true scale remains largely invisible. Bijin Jose, an Assistant Editor at Indian Express Online in New Delhi, is a technology journalist with a portfolio spanning various prestigious publications. Starting as a citizen journalist with The Times of India in 2013, he transitioned through roles at India Today Digital and The Economic Times, before finding his niche at The Indian Express. With a BA in English from Maharaja Sayajirao University, Vadodara, and an MA in English Literature, Bijin's expertise extends from crime reporting to cultural features. With a keen interest in closely covering developments in artificial intelligence, Bijin provides nuanced perspectives on its implications for society and beyond. ... Read More
Yahoo
13-06-2025
- Business
- Yahoo
Google Expands Buyouts In Search And Ads Division As AI Reshapes Priorities
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Alphabet, Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google on Tuesday offered buyouts to U.S.-based employees in multiple departments, including the search ads unit. The Details: The company extended the voluntary exit program to workers in several divisions, according to CNBC. Impacted teams include knowledge and information (K&I), central engineering, marketing, research and communications. K&I, which oversees Google's search, ads and commerce operations, has roughly 20,000 staff. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — In its most recent quarterly report, Alphabet disclosed that Google Search and related services generated $50.7 billion of the company's total revenue of $90.23 billion. When including all advertising streams—such as Search, YouTube ads and Google Network—the total advertising revenue reached $66.89 billion for the quarter, underscoring how central these business lines remain to Google's overall financial performance. The latest buyouts follow previous headcount reductions dating back to 2023. CNBC reported that finance chief Anat Ashkenazi previously cited cost-cutting as a key priority amid rising AI infrastructure spending. Google has also implemented return-to-office requirements for some remote employees living within 50 miles of a company location. A memo from K&I chief Nick Fox encouraged employees who are disengaged or underperforming to consider the exit package. However, he urged those excited by their roles and aligned with the company's goals to stay. Earlier this year, similar buyouts were offered in the "Platforms and Devices" and "People Operations" units. Google is also shifting internal training resources toward practical AI tools and away from less essential programs, CNBC It Matters: Ongoing cost-cutting efforts at Google underscore the company's broader strategy to reallocate resources toward artificial intelligence infrastructure. In February, Google planned voluntary buyouts in its People Operations division beginning in March. Some mid to senior-level staff were offered 14 weeks of severance plus an additional week for each year of service. The company also laid off operations support employees in its cloud unit, with some roles relocated to India and Mexico City. Despite this shift, the memo stated the U.S. would remain the cloud team's largest hub. These cuts came after Ashkenazi said cost discipline would be key as AI-related demand outpaced infrastructure capacity. She noted the company ended 2024 with "more demand than we had available capacity" for its AI products. Google's cloud division grew revenue by 30% year over year in Q4. Google continues to position cloud and AI initiatives as central to its 2025 investment priorities. Read Next: In terms of getting money back, these bank accounts put traditional checking and savings accounts to shame. Maximize saving for your retirement and cut down taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. Image: Shutterstock This article Google Expands Buyouts In Search And Ads Division As AI Reshapes Priorities originally appeared on Sign in to access your portfolio
India Today
12-06-2025
- Business
- India Today
Google offers buyout plans amid AI-focused overhaul: Report
Google has started offering voluntary buyouts to employees in several teams, including those working in its Knowledge and Information (K&I) unit, which includes its Search and Ads divisions, reported move is part of ongoing efforts to downsize its workforce, a strategy the tech giant has been employing since its notable layoffs in 2023 that affected 12,000 employees. The exact number of employees impacted by this latest buyout offer remains unconfirmed by the buyouts are part of a broader initiative to streamline operations as the company continues to allocate resources towards enhancing its artificial intelligence IS THIS NEW BUYOUT OFFER? Instead of laying people off, Google is now giving some employees the option to leave the company with a severance package. This is being called a "voluntary exit programme" (VEP).The company confirmed that the programme is meant for employees in the US, while some teams are asking remote workers living within 50 miles of an office to return part-time under a hybrid model to encourage more in-person collaboration, mentioned the DOES THE MANAGEMENT SAY?Google executive, Nick Fox, communicated via a memo that the VEP is designed to offer a supportive path for those who may not feel aligned with the company's strategic direction or are struggling to meet role emphasised in the memo that employees who are motivated, aligned with the company's goals, and performing well are encouraged to stay, the report IS THIS HAPPENING NOW?Google is shifting its focus to AI, which means reorganising teams and spending more wisely. The company wants to put more money into building AI tools and training its staff to use them why it's also shutting down some older training programmes and replacing them with new ones focused on AI Watch
Time of India
12-06-2025
- Business
- Time of India
Google offers buyout option to Core Googlers, Senior VP Nick Fox sends email to employees, says: Goal here is to ...
In a strategic move, Google has started a new round of voluntary exit programs, commonly referred to as buyouts. The tech giant is now offering voluntary buyouts to employees in its Core, Search, Ads, and Knowledge & Information (K&I) divisions as part of its ongoing AI-focused restructuring. This move of the company was announcedJune 10, 2025, comes alongside a stricter return-to-office mandate, requiring remote employees near a Google office to adopt a hybrid schedule. Senior Vice President Nick Fox, who leads Google's Knowledge & Information group sent an email to employees explaining the rationale behind the buyout program. He emphasised that the goal is to provide a supportive exit path for those who don't feel aligned with Google's strategy, aren't energised by their work, or are struggling to meet expectations. The voluntary exit program offers a minimum of 14 weeks' salary, plus one additional week for every year of service. Employees in affected divisions have until July 1, 2025, to enroll in the program. ReadGoogle Senior VP Nick Fox's email sent to employees here Hey all-- by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Buy Brass Idols - Handmade Brass Statues for Home & Gifting Luxeartisanship Buy Now Undo It's been an incredible few months -- we shared our vision at I/O and GML, and we've been shipping at a dizzying pace. We've seen a super positive response to AI Mode including our shopping announcements, heard excitement about our new ads experiences directly from businesses, and are bringing Maps to cutting-edge new surfaces like Gemini Live and XR glasses. It's been intense – but also intensely fun and energizing – and I've seen and heard the same from many of you. I took on this role to lead K&I because I believe there's no better place to transform the lives of billions of users through this AI moment. This is the opportunity of a lifetime -- and it's here right now. In this exciting time and with so much important work underway, my goal is for every single one of us here to be all-in on building the future of our products. To support this, I've made two decisions. Offering a Voluntary Exit Program (VEP) for K&I Googlers in the U.S. Some orgs at Google have offered a Voluntary Exit Program (VEP) over the past few months, and I've been paying close attention and considering whether we should do the same for K&I. After hearing positive feedback on those pilots as well as requests within our org, I've decided to offer a VEP -- this gives eligible U.S-based K&I Googlers (my direct reporting org) the ability to voluntarily leave the company with a severance package. 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. We need your energy and dedication, and I want you at Google! 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. Work location policy change for Local Remote K&I Googlers in the U.S. For hybrid K&I Googlers, coming into the office on a hybrid schedule is part of our expectations. You've heard me say that I believe we innovate better and make decisions faster when we're working together in the office. I've decided to update our work location policy to be more consistent, so U.S. K&I Googlers who are currently fully remote and live within 50 miles of one of our K&I return sites will transition back to the office. This means they'll align to the 3/2 hybrid schedule that nearly all K&I Googlers are already on. We're working to ensure our offices are ready to support our team as we welcome more Googlers back into the office, and we are offering relocation support if Local Remote K&I Googlers wish to be closer to their return site. Looking ahead My goal here is to ensure that everyone on our team is fully committed -- it's not to achieve a headcount target. In fact, we continue to hire where needed, and we expect to backfill many of the exited roles -- which will also create new opportunities for internal mobility and growth. We'll follow up with all U.S.-based K&I Googlers and with U.S. Local Remote K&I Googlers to share relevant details by the end of the day. I hope you feel empowered to make the decision that's right for you, and I really hope that you're inspired by the opportunity here and choose to stay and build with us. Thanks, -Nick AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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First Post
12-06-2025
- Business
- First Post
Google offers 'voluntary exit' scheme for US-based employees amid mega AI push
The 'voluntary exit' has been offered to employees from the search organisation and core engineering teams, among others read more Google has offered buyouts to thousands of its US-based employees as part of its cost-cutting efforts amid the rise of artificial intelligence and massive investments in the technology. The 'voluntary exit' has been offered to employees from the search organisation and core engineering teams, among others. The Verge obtained a memo sent out to employees by Nick Fox, the head of Google's Knowledge and Information group, saying that the buyout program 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.' STORY CONTINUES BELOW THIS AD Refresh for updates
