Google has once again turned to voluntary buyouts as a tool to reduce headcount – this time across several high-profile divisions including search, ads, and engineering. The initiative is part of what insiders describe as a voluntary exit programme (VEP), targeting US-based employees and offering severance packages to those who opt to step away from their roles.

It’s a subtle yet calculated shift – from the blunt instrument of mass layoffs to the softer landing of incentivised exits. And it begs the question: are employee buyouts becoming the new norm for corporate downsizing?

A slow bleed vs a swift cut

Rather than swinging the axe, Google seems to be tightening the belt one notch at a time. The latest buyout programme touches multiple arms of the business, including its Knowledge and Information (K&I) division, which houses the search, advertising and commerce units – the very heart of Google’s revenue engine. Central engineering, marketing, communications and even HR have also joined the growing list of departments offering voluntary exits.

“Earlier this year, some of our teams introduced a voluntary exit programme with severance for US-based Googlers, and several more are now offering the programme to support our important work ahead,” said company spokesperson Courtenay Mencini in a statement shared with media outlets.

It’s not just about trimming fat; it’s also about recalibrating for a future increasingly shaped by AI. As Google doubles down on artificial intelligence infrastructure in 2025, cost discipline is being championed from the top down.

Finance chief Anat Ashkenazi signalled in October that cost-cutting would be a priority even as the company continues to pour billions into AI development.

Reading between the lines: Performance and alignment

While the programme is framed as voluntary, the messaging leaves little room for ambiguity. In a memo reviewed by CNBC, Nick Fox, the executive leading K&I following its October reorganisation, offered a gentle nudge to those underperforming or feeling out of sync with the company’s evolving mission.

“This VEP offers a supportive exit path for those of you who don’t feel aligned with our strategy, don’t feel energised by your work, or are having difficulty meeting the expectations of your role,” he wrote. “On the other hand, if you're excited about your work, energised by the opportunity ahead, and performing well, I really (really!) hope you don’t take this!”

The subtext: those who can’t keep pace with the company’s vision may want to consider making a graceful exit. It’s a cloak covering what is, in effect, a performance management tool.

From layoffs to buyouts – a reputational recalibration

This turn towards buyouts marks a notable departure from Google’s handling of its workforce in January 2023, when the company abruptly laid off around 12,000 staff or 6% of its global workforce. Many employees were caught off-guard, losing access to systems overnight.

Some were on maternity or medical leave, others were long-serving high performers.

The backlash was swift, with internal forums flooded with criticism and a sharp decline in morale. Leadership later acknowledged the psychological toll it had taken on the workforce.

This year, the narrative is different. While still trimming down, Google is doing so with a more human touch – at least in appearance. The buyouts are positioned as an option, not a directive, giving employees a sense of agency even in the face of impending change.

The HR-speak has shifted from “resource optimisation” to “alignment with strategy,” and employees have taken notice.

One employee, reacting to earlier buyout announcements in the Platforms and Devices (P&D) team in January, wrote in an internal forum: “The P&D email portends layoffs, which sucks but offering buyouts first is what we asked for, is the right thing to do.”

A gradual rollout across the board

The K&I unit isn’t the first to dangle this carrot. Google has been quietly deploying the buyout strategy across various teams since the start of the year. The hardware unit, which includes Android, Pixel, and Chrome, extended buyout options to full-time US-based employees in January. In February, People Operations – the company’s HR department – followed suit. Since then, Google’s legal and finance teams have joined the queue.

Packages have varied, with mid to senior-level HR professionals reportedly offered up to 14 weeks of salary, plus one additional week for every year of service – a golden handshake for those ready to bow out.

Fox admitted in his memo that he had been “paying close attention” to other departments’ VEPs and decided to roll out the option in his unit after hearing positive feedback. It’s clear that buyouts are no longer a one-off – they’re being institutionalised as a tool in the HR playbook.

Strings attached: Back to the office or out the door

There’s a catch, though. With the buyout offers comes another push for employees to return to the office, especially those living within a 50-mile radius of a Google facility. Those who want to stay remote may find themselves on the wrong side of the company’s shifting priorities.

“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,” Mencini said.

That’s a not-so-subtle message for remote workers: embrace hybrid or consider an exit. It’s another lever Google is pulling in its broader cost containment strategy, nudging employees into a new normal that aligns with its AI-driven future.

Behind the curtain is the AI pivot

The flurry of exits and internal reshuffles coincides with a broader rethink of how the company operates. Google is reportedly overhauling its internal learning platform, shifting away from what one source described as “nice-to-have” programmes and instead focusing on skilling employees in AI tools essential to their work.

This signals a pivot not just towards cutting costs but towards realigning talent and capabilities with where the company is headed. AI isn’t just a buzzword at Google. It’s the bedrock of its next phase of growth.

Buyouts over layoffs: Optics or empathy?

So, are buyouts the new layoffs? In Google’s case, it seems to be a bit of both. On one hand, offering voluntary exits gives employees a sense of choice, softens the reputational blow, and reduces the likelihood of sudden PR nightmares. On the other, it’s still a way to cut costs and shift out those not making the grade, albeit with a softer touch.

From a business perspective, it’s a savvy play. Voluntary exits reduce the legal and emotional risks of forced layoffs; avoid nasty headlines; and offer a diplomatic exit for those who are no longer a fit.

For employees, it’s the difference between being pushed out and being given a chance to bow out with dignity – and a severance cheque.

Yet the shift also reflects the realities of a tech sector facing mounting pressure to do more with less. AI infrastructure is expensive; competitive advantage is razor-thin; and performance expectations are only going up. Companies like Google can’t afford bloated headcounts, but they also can’t afford another morale crisis.

Are employee buyouts the lesser of two evils?

In the court of public opinion and among the rank and file, employee buyouts might just be the better option. They offer a face-saving exit for those no longer aligned with the company’s direction and, for leadership, they provide a more palatable way to recalibrate talent without burning bridges.

As one might say in business circles, Google’s strategy is less about swinging the axe and more about opening the exit door and letting people decide whether they still want to be in the room.

But make no mistake. Whether it’s called a buyout, VEP, or realignment, the message is the same: the bar is higher, the stakes are sharper, and in Google’s AI-first future, there’s little room for passive players.