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Google Offers Buyouts to Platforms and Devices Employees Amid Cost-Cutting Moves

BusinessGoogle Offers Buyouts to Platforms and Devices Employees Amid Cost-Cutting Moves

Google is offering voluntary buyouts to employees in its Platforms and Devices unit, signaling potential workforce reductions as the company continues to focus on artificial intelligence and operational efficiency. This unit includes over 25,000 full-time employees working on Android, Chrome, ChromeOS, Google Photos, Google One, Pixel, Fitbit, and Nest. The buyout program applies to U.S.-based employees, though the exact number of eligible workers remains unclear.

In a memo to employees, Rick Osterloh, senior vice president of Platforms and Devices, stated that the initiative allows employees to voluntarily leave with a severance package. The decision aligns with Google’s broader strategy of streamlining operations while investing in AI-driven initiatives. The move follows remarks from Google’s new CFO, Anat Ashkenazi, who emphasized the need for cost-cutting as AI infrastructure spending increases in 2025.

Google’s spokesperson confirmed that the buyout program follows the company’s decision last April to merge its Android and Pixel divisions. The program is designed for employees who may not be fully aligned with the division’s evolving priorities or hybrid work structure. Osterloh described the initiative as a step toward greater efficiency and operational speed. Employees interested in the program have until February 20 to enroll, with final decisions on acceptance expected by March 25.

Internally, employees have largely welcomed the decision to offer voluntary buyouts before implementing layoffs. Many had petitioned for such an approach in an internal document focused on job security. Some employees expressed appreciation for the company’s handling of the situation, recognizing it as a more considerate alternative to immediate job cuts.

The company continues to expand its AI capabilities, recently acquiring part of the engineering team from HTC Vive to accelerate the development of its Android XR platform for headsets and smart glasses. Last August, Google introduced AI-powered features directly into its Pixel devices, a move that positioned its AI technology ahead of Apple’s anticipated AI-driven enhancements for iPhones.

While the Platforms and Devices division is not as profitable as Google’s core search advertising business, it reported a revenue increase of nearly 28% in the third quarter, reaching $10.66 billion. Meanwhile, the company remains vigilant about potential rising hardware costs, particularly if upcoming tariff policies impact imports from China, Canada, and Mexico.

Earlier in 2024, Google had already cut jobs in its hardware, central engineering, and Google Assistant teams. The buyout program is seen as another step in its ongoing restructuring efforts.

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