Google to remote employees: Return to office or face termination

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Google is increasing its return-to-office policy, requesting that certain remote workers either come into the office or get ready to leave. This action is part of the tech giant's ongoing cost-cutting and significant investment in AI. Several Google teams have notified remote employees, some of whom were previously given permanent work-from-home status, that they must now transition to a hybrid work paradigm, according to internal communications seen by CNBC. Those who refuse to comply may be offered voluntary leave packages or face layoffs.

The revised policy reflects an increasing tendency among IT companies, many of which adopted flexible work arrangements during the epidemic but are now taking a more stringent stand. Five years after COVID-19 altered workplace conventions, Google is one of the companies changing its direction by redefining work expectations.

It is requested that affected personnel report to work at least three days a week. Among the first teams to adopt the updated work norms are Google Technical Services and People Operations (HR). These departments' remote workers have been advised to move closer to an office by accepting a hybrid arrangement or accepting a one-time relocation package. By June, residents who live within 50 miles of a Google office will have to abide by the new rule or risk losing their jobs.

The business made it clear that this isn't a general rule for all employees, though. Courtenay Mencini, a Google representative, stated that team-level choices are being made. According to Mencini, "face-to-face collaboration is an important part of how we innovate and solve complex problems."

The change is also in line with Google's larger initiatives to reorganize and intensify its AI focus. In order to free up resources for AI efforts, the corporation has implemented targeted layoffs and reorganizations since 2023. Previously, voluntary departures were provided to full-time US employees in the Platforms and Devices group, which includes Fitbit, Nest, Chrome, and Android.

Google co-founder Sergey Brin is said to have advocated for AI teams to spend more time in the office earlier this year, citing 60-hour workweeks as the "sweet spot" for productivity. He emphasized that in order to keep ahead of the rapidly evolving race, AI development must be accelerated.

As of the end of 2024, Google had about 183,000 employees globally, a slight drop from its 2022 peak. The return-to-office push could be part of a larger effort to streamline operations and boost in-person collaboration at a time when the company's priorities are changing.