Google Offers Buyouts to More Workers amid AI-driven Tech Upheaval and Antitrust Uncertainty

The new Google logo is seen in this illustration taken May 13, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
The new Google logo is seen in this illustration taken May 13, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
TT

Google Offers Buyouts to More Workers amid AI-driven Tech Upheaval and Antitrust Uncertainty

The new Google logo is seen in this illustration taken May 13, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
The new Google logo is seen in this illustration taken May 13, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

Google has offered buyouts to another swath of its workforce across several key divisions in a fresh round of cost cutting coming ahead of a court decision that could order a breakup of its internet empire. The Mountain View, California, company confirmed the streamlining that was reported by several news outlets, said The Associated Press.

It’s not clear how many employees are affected, but the offers were made to staff in Google's search, advertising, research and engineering units, according to The Wall Street Journal. Google employs most of the nearly 186,000 workers on the worldwide payroll of its parent company, Alphabet Inc.

“Earlier this year, some of our teams introduced a voluntary exit program with severance for US-based Googlers, and several more are now offering the program to support our important work ahead," a Google spokesperson, Courtenay Mencini, said in a statement.

“A number of teams are also asking remote employees who live near an office to return to a hybrid work schedule in order to bring folks more together in-person,” Mencini said.

Google is offering the buyouts while awaiting for a federal judge to determine its fate after its ubiquitous search engine was declared an illegal monopoly as part of nearly 5-year-old case by the US Justice Department. The company is also awaiting remedy action in another antitrust case involving its digital ad network.

US District Judge Amit Mehta is weighing a government proposal seeking to ban Google paying more than $26 billon annually to Apple and other technology companies to lock in its search engine as the go-to place for online information, require it to share data with rivals and force a sale of its popular Chrome browser. The judge is expected to rule before Labor Day, clearing the way for Google to pursue its plan to appeal last year's decision that labeled its search engine as a monopoly.

The proposed dismantling coincides with ongoing efforts by the Justice Department to force Google to part with some of the technology powering the company’s digital ad network after a federal judge ruled that its digital ad network has been improperly abusing its market power to stifle competition to the detriment of online publishers.

Like several of its peers in Big Tech, Google has been periodically reducing its headcount since 2023 as the industry began to backtrack from the hiring spree that was triggered during pandemic lockdowns that spurred feverish demand for digital services.

Google began its post-pandemic retrenchment by laying off 12,000 workers in early 2023 and since then as been trimming some divisions to help bolster its profits while ramping up its spending on artificial intelligence — a technology driving an upheaval that is starting to transform its search engine into a more conversational answer engine.



Trump Joins Tech and Energy Executives amid AI Push

A car drives past a building of the Digital Reality Data Center in Ashburn, Virginia, US, March 17, 2025. REUTERS/Leah Millis/File Photo
A car drives past a building of the Digital Reality Data Center in Ashburn, Virginia, US, March 17, 2025. REUTERS/Leah Millis/File Photo
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Trump Joins Tech and Energy Executives amid AI Push

A car drives past a building of the Digital Reality Data Center in Ashburn, Virginia, US, March 17, 2025. REUTERS/Leah Millis/File Photo
A car drives past a building of the Digital Reality Data Center in Ashburn, Virginia, US, March 17, 2025. REUTERS/Leah Millis/File Photo

President Donald Trump will join executives from some of the largest US tech and energy companies for a summit in Pittsburgh on Tuesday as the administration prepares fresh measures to power the US expansion of artificial intelligence.

Top economic rivals US and China are locked in a technological arms race over who can dominate AI as the technology takes on increasing importance everywhere from corporate boardrooms to the battlefield.

The Energy and Innovation Summit at Carnegie Mellon University is expected to bring tech executives and officials from top energy and tech firms including Meta, Microsoft, Alphabet and Exxon Mobil to discuss how to position the US as a leader in AI. Trump will use the summit - put together by US Senator Dave McCormick, a Republican ally from Pennsylvania - to announce some $70 billion in artificial intelligence and energy investments in the state, Reuters reported.

Big Tech is scrambling to secure vast amounts of electricity supplies to power the energy-guzzling data centers needed for its rapid expansion of artificial intelligence. Companies began announcing their plans in early on Tuesday, with Google inking a $3 billion electricity deal and CoreWeave touting a $6 billion AI data center.

Google will invest $25 billion in regional data centers, while FirstEnergy will invest $15 billion in Pennsylvania's energy grid, Semafor reported. The CEOs expected to attend include Khaldoon Al-Mubarak of Mubadala, Rene Haas of Arm, Larry Fink of BlackRock, Darren Woods of ExxonMobil, Brendan Bechtel of Bechtel and Dario Amodei of Anthropic. The White House is considering executive actions in the coming weeks to make it easier for power-generating projects to connect to the grid and also provide federal land on which to build the data centers needed to expand AI technology, Reuters previously reported.

The administration is also weighing streamlining permitting for data centers by creating a nationwide Clean Water Act permit, rather than requiring companies to seek permits on a state-by-state basis.

Mike Sommers, head of the influential American Petroleum Institute, said executive action is welcomed to unlock the energy needed to power the data centers, but a more durable solution is needed.

"Real durable permitting reform requires an act of Congress, not just an executive order," Sommers said in an interview with Reuters. Trump ordered his administration in January to produce an AI Action Plan that would make "America the world capital in artificial intelligence" and reduce regulatory barriers to its rapid expansion.

That report, which includes input from the National Security Council, is due by July 23. The White House is considering making July 23 "AI Action Day" to draw attention to the report and demonstrate its commitment to expanding the industry, Reuters has reported.

US power demand is hitting record highs this year after nearly two decades of stagnation as AI and cloud computing data centers balloon in numbers and size across the country. The demand is also leading to unprecedented deals between the power industry and technology companies, including the attempted restart of the Three Mile Island nuclear power plant in Pennsylvania between Constellation Energy and Microsoft.

The surge has led to concerns about power shortages that threaten to raise electricity bills and increase the risk of blackouts, while slowing Big Tech in its global race against countries like China to dominate artificial intelligence.