Google Extends Voluntary Buyouts to Workers in Five Countries as AI Spending Fuels Cost Cuts
Key Takeaways
- •Google offered voluntary buyouts to select employees in Canada, France, Germany, Japan and Switzerland beginning in June, but did not disclose how many accepted.
- •Alphabet lost nearly $500 billion in Wall Street valuation amid investor concerns over Google's heavy AI spending.
- •In Switzerland, employees who took the exit package received one month of pay per year of service, with severance capped at 12 months.
- •CFO Anat Ashkenazi said on the July 22 earnings call that Google will keep hiring in key investment areas such as AI and cloud computing.
- •Microsoft last week offered voluntary buyouts to 60,000 employees as part of an effort to contain expenses and fund its massive AI investments.

Google is expanding its voluntary buyout program to employees in five additional countries as the company seeks to rein in expenses while continuing to pour money into artificial intelligence.
The company told Reuters that select workers in Canada, France, Germany, Japan and Switzerland were offered buyouts beginning in June, though it did not disclose how many employees accepted. FOX Business has contacted Google for comment.
"In 2025, some of our teams introduced a voluntary exit program with severance," a Google spokesperson said in a statement to Reuters. "This past summer, in June, we expanded this program globally in a few countries to support our important work ahead."
The buyouts come as Google's heavy AI spending has unsettled investors and weighed on the share price of parent company Alphabet, which saw nearly $500 billion wiped from its Wall Street valuation amid spending fears.
Alphabet's workforce has continued to grow in recent quarters, but the company wants to reallocate resources toward areas it views as higher priorities. While Google keeps prioritizing hiring in AI and cloud computing, the voluntary buyout programs point to an effort to shift resources away from units considered less vital to its future strategy.
The latest round builds on similar incentives Google introduced last year for workers in select teams in the U.S. and Britain. Company leaders said the program gives employees who are uncomfortable with Google's future direction an opportunity to leave with severance. At least one division at the search company later moved to involuntary job cuts after first offering workers buyouts.
On recent earnings calls, Chief Financial Officer Anat Ashkenazi said Google would continue adding workers in AI and cloud, which she described as key areas for investment and growth.
"We also expect to continue hiring in key investment areas such as AI and Cloud, and we are investing in marketing to support our AI products," Ashkenazi said on the company's July 22 earnings call.
Earlier buyout programs did not extend to employees working in Google's cloud business or its DeepMind AI research unit.
In Switzerland, Google announced the exit packages in mid-June and notified applicants of its decisions by mid-July, three people familiar with the matter told Reuters. Employees who accepted the offer received one month of pay for every year they had worked at the company, with total severance capped at 12 months.
Other companies have made similar offers to their workforce amid efforts to mitigate costs. Last week, Microsoft offered voluntary buyouts to 60,000 employees as part of an effort to contain expenses and finance its massive AI investments. The offer covered divisions including AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices, while marketing, commercial business and security teams were excluded.
Microsoft Chief People Officer Amy Coleman said the program would give eligible employees considering a future outside the company an opportunity to make the transition with financial support.
The parallel buyout offers from Google and Microsoft underscore the financial pressure facing Big Tech companies racing to build AI capabilities. Spending on data centers, advanced chips and computing infrastructure is surging as investors question how quickly those investments will generate sustainable returns.
Reuters contributed to this report.