Google has announced a voluntary buyout program for its "Platforms and Devices" unit, prompting speculation about potential future layoffs. This initiative, which applies to full-time employees in the United States, allows these workers to voluntarily leave with a severance package. The unit, encompassing over 25,000 employees, works on key products such as Android, Chrome, ChromeOS, Google Photos, Google One, Pixel, Fitbit, and Nest. Employees interested in the program have until February 20 to enroll, with notifications of acceptance scheduled for March 25.
The voluntary exit plan is particularly aimed at employees who may be struggling with job demands, the hybrid work environment, or those whose professional interests no longer align with the division's mission. By offering buyouts rather than immediately resorting to layoffs, Google aims to operate more efficiently and swiftly. Rick Osterloh, Senior Vice President of Platforms and Devices, emphasized this approach as the "right next step" for the unit.
"This gives eligible P&D Googlers in my direct-reporting org the ability to voluntarily leave the company with a severance package," – Rick Osterloh
This move comes in the wake of a robust financial performance by the Platforms and Devices unit, which saw its revenue rise to $10.66 billion in the third quarter—a significant increase from $8.34 billion the previous year. Despite these gains, Google's broader strategy involves prioritizing artificial intelligence initiatives, leading to expected cuts across various units.
The announcement is part of a larger restructuring within Google. Last April, the company combined its Android and Pixel divisions. More recently, in January 2024, Google downsized some positions within its hardware and central engineering teams, as well as within Google Assistant.
For some employees, the offer of buyouts before layoffs is seen as a positive move. An anonymous employee expressed appreciation for this approach:
"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," – Anonymous employee
Google's overall revenue also reflected strong performance with a total of $88.27 billion reported for the third quarter. The company is expected to announce further details about tariffs on imports from China, Canada, and Mexico in the coming days. Meanwhile, newly appointed CFO Anat Ashkenazi has outlined her focus on cutting costs while expanding AI infrastructure investment.
"Any organization can always push a little further and I'll be looking at additional opportunities," – Anat Ashkenazi
As Google navigates these changes, the decision to offer buyouts highlights its commitment to managing transitions with employee welfare in mind while aligning with strategic priorities such as AI development.