Google's AI Ambitions Spark Cost Cuts – Over 25,000 Employees Offered Buyouts as Company Focuses on 'Speed and Efficiency' - Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN)

Google is making big moves again—this time with a voluntary exit program for over 25,000 employees in its Platforms and Devices division.

This division includes major teams behind Android, Chrome, Google Photos, and hardware products like Pixel, Fitbit, and Nest. Employees interested in the buyout have until Feb 20 to apply, with final decisions expected by March 25.

This isn't Google's first workforce shakeup. In 2023, the company laid off roughly 12,000 employees—about 6% of its global workforce—spending a hefty $2.1 billion on severance and related costs.

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Now, instead of layoffs, Google is offering voluntary buyouts as part of a broader plan to cut costs and double down on artificial intelligence investments. According to Alphabet GOOG GOOGL)) CFO Anat Ashkenazi, the company is looking for "additional opportunities" to reduce expenses at the Google unit while advancing its AI ambitions.

Not everyone is happy about the ongoing restructuring. The Alphabet Workers Union has voiced concerns over job security, circulating a petition with over 1,400 signatures. Their demands? Guaranteed severance packages, buyout options before any layoffs, and a shift away from Google’s tier-based employee rating system.

"Ongoing rounds of layoffs make us feel insecure about our jobs," the petition says. "The company is clearly in a strong financial position, making the loss of so many valuable colleagues without explanation hurt even more."

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While Google is trimming certain teams, the broader tech industry is expected to see a rebound in hiring. Between 2022 and 2023, major players like Apple AAPL, Amazon AMZN, Meta Platforms META, and Microsoft MSFT made deep job cuts.

But by 2024, these same companies increased their headcount by 48,571 employees, collectively pulling in a record $1.8 trillion in revenue—largely fueled by AI investments. Amazon saw the biggest workforce expansion, while Alphabet reported the smallest growth.

In another strategic shift, Google merged its Android and hardware teams under Senior Vice President Rick Osterloh last April. The goal? To integrate AI more efficiently across its products. Google's voluntary exit program, however, is currently limited to the Platforms and Devices division and hasn't been extended to teams like Search or DeepMind AI.

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For Google, this voluntary buyout is a way to keep its workforce aligned with its evolving priorities. The company wants employees who are "deeply committed" to its vision and capable of building innovative products quickly and efficiently.

Offering an exit option allows those who may not be fully on board with the direction Google is headed to leave with financial support.

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