This year, Google is expanding its existing voluntary separation programs for employees to several countries. The company is doing so to control costs while making significant investments in AI.
The company confirmed to Reuters that it began offering voluntary separation packages to employees in Canada, France, Germany, Japan, and Switzerland in June. Reuters could not determine how many employees accepted the latest round of offers.
A Google spokesperson said that some of the company’s teams introduced a voluntary separation program with severance pay in 2025. “Last summer, in June, we expanded this program globally to a number of countries to support our important work going forward,” Reuters quoted the spokesperson as saying.
Concerns over rising AI infrastructure costs
The news comes as spending on AI infrastructure has led investors worldwide to question the return on those investments. Google’s parent company, Alphabet, is therefore not an isolated case, and the move comes amid a sharp rise in AI spending that has unsettled Wall Street and weighed on Alphabet’s stock price. Microsoft offered voluntary separation packages to approximately 60,000 employees late last month, as the company seeks to cut costs and help finance its substantial investments in artificial intelligence.
This represents more than a quarter of Microsoft’s global workforce, spread across the United States, the United Kingdom, Canada, and India. Those who leave will receive financial compensation and assistance in finding a new job.
Although Alphabet’s workforce has grown steadily in recent quarters, the company is simultaneously trying to shift financial resources and personnel to teams where the need for expertise is greatest.
The new arrangements follow voluntary departure programs Google has offered since last year to employees in certain divisions in the U.S. and the U.K. Executives have described the program as a good option for employees who no longer align with the company’s pace or direction.