Google is initiating a voluntary buyout program for employees within its “Platforms and Devices” unit, which encompasses over 25,000 full-time staff working on products such as Android, Chrome, Google Photos, Pixel, and Fitbit. This move comes as the company braces for anticipated workforce reductions.
According to internal documents reviewed by CNBC, the buyouts are specifically targeted at full-time employees in the U.S., although the exact number of eligible workers remains unspecified. Rick Osterloh, senior vice president of Platforms and Devices, communicated the initiative in a memo, stating that it allows eligible employees to exit the company with a severance package.
This buyout program indicates Google’s broader strategy to streamline operations while increasing focus on artificial intelligence. In a recent statement, new CFO Anat Ashkenazi emphasized her commitment to cost-cutting measures, particularly in light of the company’s plans to invest heavily in AI infrastructure in 2025.
A Google spokesperson confirmed the buyout initiative, citing the recent merger of the Android and Pixel divisions as a catalyst for this decision. The spokesperson noted, “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.”
Osterloh highlighted that the voluntary exit plan may appeal to employees who find it challenging to meet job demands or whose professional aspirations do not align with the division’s goals. He framed this program as a necessary step towards enhancing the unit’s efficiency and agility.
Employees can enroll in the buyout program until February 20, and decisions on acceptance will be communicated by March 25.
Positive Reception Among Employees
Internal responses to the buyout offer have been generally favorable, with some employees expressing appreciation for the option to leave voluntarily rather than facing immediate layoffs. One employee remarked 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.”
In light of the anticipated cost cuts, employees circulated a petition titled “job security,” advocating for voluntary buyouts before any layoffs.
Additionally, Google recently announced its acquisition of engineering talent from HTC Vive to expedite the development of the Android XR platform, further emphasizing its commitment to innovation in the virtual reality space.
Despite not being as lucrative as Google’s search advertising division, the Platforms and Devices unit reported a revenue increase to $10.66 billion in the third quarter, up nearly 28% from the previous year.
As Google navigates these challenges, the company remains vigilant about potential risks, including rising hardware costs linked to impending tariffs on imports from China, Canada, and Mexico, as outlined by former President Donald Trump.
In January 2024, Google had already laid off employees from its hardware and central engineering teams, as well as those working on Google Assistant. Tech news outlet 9to5Google first reported details regarding the voluntary exit program.
