YouTube is offering voluntary exit packages with severance to US employees as the Google-owned platform restructures its operations into three distinct product organizations. CEO Neal Mohan announced the move in an internal memo Wednesday, the same day parent company Alphabet reported YouTube's ad revenue climbed 15% to $10.26 billion.
YouTube just handed US employees an unusual choice - take a voluntary exit package or stay for what CEO Neal Mohan calls the platform's biggest reorganization yet. The timing couldn't be more telling, coming hours after Alphabet posted stellar quarterly results showing YouTube's advertising revenue jumped 15% to $10.26 billion.
Mohan's internal memo, obtained by Sources and confirmed to TechCrunch, reveals a company flush with cash but apparently overstaffed for its next phase. The voluntary nature sets YouTube apart from the wave of forced layoffs that swept Meta, Amazon, and other tech giants throughout 2024.
"No roles are being eliminated as part of these changes," YouTube emphasized, distinguishing this from traditional downsizing. Instead, the company's betting that enough employees will take the money and run, allowing for a natural workforce reduction without the PR nightmare of mass terminations.
The restructuring splits YouTube into three focused organizations, all reporting directly to Mohan. The "Subscription Products" team will handle YouTube Music, Premium, and over-the-top services - the revenue streams Google desperately needs as it competes with Apple Music and Netflix. Meanwhile, the "Viewer Products" division tackles the core YouTube experience, including YouTube Kids and Trust & Safety operations that have faced intense regulatory scrutiny.
Most intriguingly, the new "Creator & Community Products" organization signals YouTube's recognition that its creator economy drives everything else. With TikTok facing potential US bans and Meta struggling to monetize Reels, YouTube's creator tools could become its biggest competitive advantage.
The voluntary exit timing aligns suspiciously well with YouTube's financial health. According to Alphabet's Q3 earnings report, the platform's advertising revenue grew consistently quarter-over-quarter, suggesting this isn't a cost-cutting panic but strategic workforce optimization. Industry analysts see this as YouTube preparing for an AI-driven transformation that requires different skill sets than its current workforce possesses.
