Is Google’s voluntary exit program for their hardware division a red flag?

Following last year’s consolidation of Pixel hardware and Android software teams, Google has announced a voluntary exit program for US-based employees within its Platforms & Devices division. This division encompasses a wide range of products, including Android (Auto, TV, Wear OS, XR), Chrome, ChromeOS, Google Photos, Google One, Pixel, Fitbit, and Nest.

A memo from SVP Rick Osterloh to employees confirmed the program’s existence, with Google subsequently verifying the information with 9to5Google. It’s important to note that this is not a company-wide initiative and does not extend to other groups such as Search or AI. This news comes after Alphabet’s CFO emphasized the importance of “driving further efficiencies” last October.  

What Google is saying

The merger of the hardware and software divisions, while intended to streamline operations, naturally created some overlap. As employees have settled into their roles in recent months, questions about the possibility of voluntary exits have arisen. Osterloh’s memo positions the program as an opportunity for those who may not feel fully aligned with the combined organization’s mission or are experiencing difficulties with their roles or the hybrid work structure. This approach addresses past criticisms regarding Google’s handling of workforce adjustments.  

The Platforms & Devices team is offering a voluntary exit program that provides US-based Googlers working on this team the ability to voluntarily leave the company with a severance package. This comes after we brought two large organizations together last year. There’s tremendous momentum on this team and with so much important work ahead, we want everyone to be deeply committed to our mission and focused on building great products, with speed and efficiency.

via Rick Osterloh’s memo

It looks bad, but probably isn’t at all

I suppose you can take this sort of news any way you wish, but it all sounds pretty benign to me. Seeing the headlines definitely made me wonder at first, but I don’t think this move has anything at all to do with Google rolling hardware back or cancelling products.

While I understand how it could be viewed this way, the truth is if Google’s hardware divisions were struggling enough to force layoffs and job cuts, they would likely just do that and move on. It wouldn’t be the first time a tech company laid off workers in light of poor sales numbers.

Instead, this move doesn’t force anyone out and simply gives those who no longer feel aligned with the hardware division’s vision on multiple fronts to simply exit with grace and a nice severance in their pockets.

How many will take advantage of this program is obviously not known, and I doubt we’ll get firm numbers about those who do. The fact of the matter is this is a voluntary program, not required, so there’s a tiny chance that not one single person takes the opportunity to leave. Either way, I don’t think this is a situation where there’s something more troubling going on behind the scenes. I sincerely hope that’s the case, at least.