Google has reportedly offered buyouts to a significant portion of its workforce across several key divisions as part of a new cost-cutting initiative, which comes ahead of a court ruling that could potentially lead to the breakup of its internet empire. The company, based in Mountain View, California, confirmed the streamlining efforts that had been covered by various news outlets. While the exact number of affected employees remains unclear, it was mentioned that buyout offers were extended to staff in Google’s search, advertising, research, and engineering units, as noted by The Wall Street Journal. The tech giant employs most of the approximately 186,000 workers under its parent company, Alphabet Inc.
A Google spokesperson, Courtenay Mencini, stated that earlier in the year, some teams had introduced a voluntary exit program with severance for US-based employees, and several more teams were now providing the same program to support future projects. Mencini also indicated that various teams were requesting remote employees living near company offices to return to a hybrid work model to foster more in-person collaboration.
Why buyouts are being offered
The buyouts are being offered as Google awaits a federal judge's decision regarding its fate, following the declaration of its search engine as an illegal monopoly as part of a nearly five-year-old case initiated by the US Justice Department. The company is also anticipating remedial actions in another antitrust case related to its digital advertising network.
US District Judge Amit Mehta is currently considering a government proposal that aims to restrict Google from paying more than $26 billion annually to Apple and other tech firms to maintain its status as the preferred search engine for online information.
The proposal also includes requirements for Google to share data with competitors and potentially sell its popular Chrome browser. A ruling from the judge is expected before Labor Day, which could allow Google to proceed with its plan to appeal last year's ruling labeling its search engine as a monopoly.
The call for dismantling certain aspects of the company aligns with ongoing efforts by the Justice Department to compel Google to divest some of the technology behind its digital ad network, following a ruling that determined its network had been unfairly abusing its market power to hinder competition and negatively impact online publishers.
Layoffs at Google
Like many of its counterparts in Big Tech, Google has been gradually reducing its workforce since 2023 as the industry began to reverse the aggressive hiring practices initiated during the pandemic lockdowns, which had spurred heightened demand for digital services.
The company's post-pandemic downsizing began with the layoff of 12,000 workers in early 2023, and it has continued to streamline certain divisions to enhance profitability while simultaneously increasing investments in artificial intelligence, a technology that is beginning to transform its search engine into a more conversational answer system.
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