Despite a robust financial year, U.S.-based tech giant Google has reportedly issued smaller pay increases to some of its employees in 2025. Concerns over the reduced compensation were raised during a recent all-hands TGIF meeting, where employee questions highlighted growing dissatisfaction.

According to Business Insider, one of the top-voted employee questions at the meeting focused on why certain staff members were seeing lower equity grants and overall compensation, even as the company performed well financially.

Addressing the matter, John Casey, Google’s Vice President of Global Compensation and Benefits, stated that more than 80% of employees received a pay increase for 2025. However, he acknowledged that not everyone benefited equally.

Who was affected

Casey explained that employees in less technical roles or based in specific regions received smaller equity packages. These adjustments, he said, reflect Google’s ongoing efforts to align compensation with local market conditions.

Understanding Google’s pay structure

Google’s total compensation packages typically include base salary, equity (stock grants), and, in some cases, performance bonuses. Pay is largely tied to individual impact and performance, which can lead to wide variations in how employees are rewarded. Casey emphasized that the company’s compensation model is designed to recognize those who drive significant value for the business.

Recurring pay concerns

This isn’t the first time compensation has become a contentious topic at Google. Similar concerns were raised during the 2024 compensation cycle, with some employees feeling that pay growth had not kept pace with their contributions. A company spokesperson responded that the 2025 cycle followed similar patterns, with adjustments made to ensure competitiveness across different roles and geographies.

Organisational shifts and exit program

In a separate development, following the April 2024 merger of the Pixel hardware and Android software teams, Google introduced a voluntary exit program for employees in the Platforms & Devices division. As reported by 9to5Google, the initiative was communicated through a memo by Senior Vice President Rick Osterloh, offering guaranteed severance for those choosing to step down.

Emphasis on focus and efficiency

In his memo, Osterloh noted, “This comes after we brought two large organizations together last year.” He underlined the need for renewed commitment, stating, “There’s tremendous momentum in this team, and with so much important work ahead, we want everyone focused on building great products with speed and efficiency.”