Google has expanded its voluntary employee buyout programme to five countries as the technology giant looks to rein in costs while ramping up investments in artificial intelligence (AI), according to a Reuters
report. The move comes amid growing scrutiny from investors over the mounting costs of AI infrastructure and the pressure to demonstrate returns on the massive investments being made by Big Tech companies.
Alphabet-owned Google confirmed that it began offering voluntary exit packages in June to select employees in Canada, France, Germany, Japan and Switzerland. The latest expansion, which had not been reported earlier, is part of the company’s broader efforts to realign its workforce and direct resources towards its strategic priorities.
Google did not disclose how many employees had accepted the latest round of buyout offers. A company spokesperson was quoted by Reuters as saying that some teams had introduced voluntary exit programmes with severance packages in 2025, before the initiative was expanded to a few countries globally in June this year.
The latest move follows similar voluntary exit programmes introduced by Google in certain divisions in the United States and Britain since last year. Company executives have previously described these offers as an option for employees who no longer feel aligned with the organisation’s pace or direction.
Interestingly, the buyout programme appears to spare some of Google’s most important AI and cloud businesses. According to the report, employees in Google Cloud and its artificial intelligence research division DeepMind were excluded from earlier rounds of voluntary exit offers, a pattern that the latest expansion also appears to follow.
In Switzerland, where Google employs approximately 5,000 people and operates a major engineering hub in Zurich, the programme covered several divisions but excluded DeepMind, three people familiar with the matter said.
The company announced the packages in mid-June and gave employees until mid-July to respond. Those accepting the offer began leaving in August. The severance package included one month’s salary for every year of service, capped at 12 months. At least four employees in one team of approximately 50 reportedly accepted the offer.
Microsoft Offers Buyouts To 60,000 Employees
Google’s move has been reported just days after Microsoft announced a significantly larger voluntary exit programme, offering buyouts to approximately 60,000 employees, or more than a quarter of its global workforce.
The programme was aimed at helping Microsoft contain costs and finance its massive AI investments. Employees at level 70 and below in participating teams across the United States, Canada, the United Kingdom and India were eligible.
The offer covered divisions including AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices. Marketing, commercial business and security teams were excluded.
Microsoft Chief People Officer Amy Coleman said the initiative would give eligible employees considering a future outside the company an opportunity to make the transition with financial support, while allowing participating organisations to adapt their workforce to changing requirements.
The announcement followed an earlier voluntary buyout programme covering approximately 9,000 employees, or around 7 per cent of Microsoft’s US workforce. The company also announced 4,800 job cuts in July as part of a restructuring of its Xbox gaming business.
Microsoft had 223,000 full-time employees globally as of June 2026 and has forecast capital expenditure of $175 billion for the calendar year, reflecting the scale of its AI infrastructure ambitions.
Big Tech Faces Growing Pressure Over AI Costs
The parallel moves by Google and Microsoft highlight the growing financial challenge facing technology companies as they compete to build AI capabilities. Investments in data centres, advanced chips and computing infrastructure are increasing expenditure, even as investors question how quickly these investments will translate into sustainable returns.
For Alphabet, rising AI spending has unsettled investors and weighed on its stock price. While the company has continued to prioritise hiring in AI and cloud computing, its voluntary buyout programmes indicate an effort to shift resources away from areas considered less central to its future strategy.
The developments also point to a changing workforce strategy across the technology industry, where companies are increasingly using voluntary exits and organisational restructuring to manage costs while directing greater resources towards AI.
