YouTube Offers Buyouts to US Staff as Ad Revenue Jumps 15% Amid AI Reorganization

YouTube has initiated a voluntary exit program for its U.S.-based employees, offering severance packages as part of a significant internal restructuring focused on artificial intelligence. The announcement was made by CEO Neal Mohan via an internal memo on Wednesday, October 29, 2025, as reported by TechCrunch. This strategic shift aims to align the company's product teams with its future vision, heavily emphasizing AI integration.

The voluntary exit program allows employees who may be "ready for a new challenge" to depart with severance, though YouTube clarified that no roles are being eliminated as part of these changes. According to the internal memo, Mohan stated, "We also understand some of you may be ready for a new challenge, so we've decided now is the right time to offer a Voluntary Exit Program." This move underscores YouTube's efforts to refine its organizational structure without resorting to layoffs.

Concurrently, YouTube is reorganizing its product teams into three distinct organizations, all reporting directly to CEO Mohan. These new divisions include "Subscription Products," focusing on YouTube Music and Premium; "Viewer Products," overseeing the main YouTube app, Kids, Learning, and Trust & Safety; and "Creator & Community Products," dedicated to supporting creators and fostering community engagement. This marks the platform's first major product division restructuring in a decade.

A primary driver behind this reorganization is YouTube's strategic push into artificial intelligence. Mohan articulated this vision in his memo, stating, "Looking to the future, the next frontier for YouTube is AI, which has the potential to transform every part of the platform." The restructuring is designed to accelerate decision-making and execution in AI-driven initiatives, positioning YouTube for an AI-centric future.

The announcement coincided with Alphabet's third-quarter earnings report, which revealed strong financial performance for YouTube. The platform's advertising revenue reached $10.26 billion in the period, marking a substantial 15% year-over-year increase. This financial strength provides a backdrop for the company's proactive restructuring, indicating a strategic rather than financially necessitated overhaul.