Google widens voluntary exit programme to five countries as AI costs rise

Google has extended its voluntary exit programme to employees in Canada, France, Germany, Japan and Switzerland as the company seeks to rein in mounting artificial‑intelligence spending.

What Happened

The programme, first rolled out in June, offers a severance package of one month’s salary for each year of service, capped at twelve months. Google confirmed to Reuters that the offer now covers multiple divisions in the five countries, but it continues to exclude staff in its DeepMind unit and those working on Google Cloud and AI projects. In Switzerland, where the firm employs roughly 5,000 people at its Zurich engineering hub, three insiders said the offer was made in mid‑June and applications were answered by mid‑July. At least four members of a 50‑person team have taken the buyout.

Reaction

Google’s spokesperson said the move supports “our important work ahead” and gives staff a choice if they no longer feel aligned with the company’s pace or direction. Executives have described the programme as an option rather than a layoff, though the firm did lay off over 200 Swiss staff in 2023, sparking protests and a walkout. CFO Anat Ashkenazi has repeatedly highlighted AI and cloud computing as top hiring priorities, underscoring the tension between expansion in those areas and cost‑control measures.

Context

Voluntary exit schemes have been used by Alphabet since last year in the US and Britain, and Microsoft recently offered buyouts to 60,000 workers to curb costs. Google’s latest expansion follows a pattern of targeting non‑core divisions while protecting teams tied to its AI ambitions.