The K&I unit, which encompasses the search business, ads, and commerce divisions, reportedly has 20,000 employees.

Alphabet, Inc. (GOOGL) (GOOG) has reportedly offered a “voluntary exit program” to employees at its Knowledge and Information (K&I) unit, which encompasses its bread-and-butter search business, as well as those in its engineering, marketing, research, and communications teams.

Tech companies have been on a rightsizing spree as the economic environment remains uncertain due to President Donald Trump’s tariffs. 

Advertising firm WPP on Monday reduced its global ad spending growth forecast to 6% from the 7.7% estimated earlier, citing shifting policies. 

A CNBC report, citing a company statement, said the buyouts applied to the U.S.-based employees. The report also said Alphabet has required remote workers from some teams who live within 50 miles of the office to return to the office and assume a hybrid work schedule.

The K&I unit reportedly has 20,000 employees. 

Nick Fox, who heads the unit, sent a memo to employees on Tuesday, in which he said, “I want to be very clear: If you’re excited about your work, energized by the opportunity ahead, and performing well, I really (really!) hope you don’t take this! We have ambitious plans and tons to get done.”

“On the other hand, this VEP offers a supportive exit path for those of you who don’t feel aligned with our strategy, don’t feel energized by your work, or are having difficulty meeting the expectations of your role.”

Alphabet was among the big techs that laid off employees in bunches following the inflation-induced slowdown in 2022. 

The CNBC report said buyouts have been Alphabet’s preferred strategy to cut flab. In January, the company’s Platforms and Devices business offered full-time U.S. employees buyouts, followed by similar actions at the “People Operations” and legal and finance departments. 

The People Operations, referring to Alphabet’s human resources department, reportedly offered mid to senior-level employees severances of up to 14 weeks of salary and one additional week for every full year of service.

Separately, close on the heels of Apple launching new software versions, Alphabet announced the next iteration of its Android mobile operating system, dubbed version 16, to power Pixel devices. 

The latest OS has new features to personalize group chats in Google Messages, and provides a new redesigned image editor. It also helps find and manage smart home devices faster by setting up device-specific shortcuts in users' Google Home app and extending the time of Safety Check in the Personal Safety app.

On Stocktwits, retail sentiment toward Alphabet stock stayed ‘bearish’ (42/100) by late Tuesday, although the message volume was normal.

GOOGL sentiment and message volume as of 1:54 a.m. ET, June 11 | source: Stocktwits

Commenting on the buyouts, a user said, “Google is so bloated, they could run their business with half the employees.”

Alphabet stock ended Tuesday’s session up 1.43% at $178.60, while it is down over 4.5% this year.

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