CEO Neal Mohan confirms move in internal memo as part of structural reorganization
YouTube has rolled out a voluntary exit program for its U.S.-based employees, offering severance packages to those choosing to leave amid a major internal restructuring.
The announcement was made in an internal memo from CEO Neal Mohan on Wednesday, marking one of the company’s most significant organizational updates since he took over the platform’s leadership in 2023.
Three new product divisions under YouTube’s new structure
In his memo, Mohan outlined that YouTube will now operate under three distinct product divisions, all reporting directly to him:
- Subscription Products – managing YouTube Music, YouTube Premium, and YouTube’s OTT (over-the-top) streaming offerings.
- Viewer Products – overseeing user experience across the main YouTube app, YouTube Kids, Learning, and Trust & Safety functions.
- Creator & Community Products – focusing on creator support, monetization tools, and community engagement initiatives.
According to Mohan, the reorganization aims to “improve decision-making speed and focus” while aligning YouTube’s teams around its most dynamic business areas: subscriptions, creators, and viewer engagement.
No layoffs planned, says YouTube
Importantly, YouTube clarified that the restructuring does not involve layoffs. The voluntary exit program is intended to provide flexibility for employees who may wish to pursue new opportunities while receiving financial support through severance packages.
The company has not disclosed how many employees are eligible for the program or the exact terms of the severance plan.
Mohan emphasized that the reorganization is not a cost-cutting exercise but part of a broader effort to “streamline operations and foster innovation across YouTube’s ecosystem.”
Alphabet reports strong quarterly results
The development coincides with Alphabet’s third-quarter earnings, where YouTube’s advertising revenue reached $10.26 billion, up 15% year-over-year.
The platform’s continued revenue growth underscores its strong market position despite global competition from TikTok, Meta Reels, and emerging short-form content platforms.
Analysts say YouTube’s reorganization aligns with Alphabet’s long-term strategy to make its divisions more autonomous, adaptive, and innovation-driven — especially in areas tied to AI integration, creator monetization, and content personalization.
What’s next for YouTube employees
While the voluntary exit program introduces a degree of uncertainty among employees, the company maintains that it reflects a proactive approach to managing workforce transitions rather than forced downsizing.
Employees who opt to stay will soon see new leadership structures and clearer reporting lines, as YouTube doubles down on AI-powered recommendations, premium subscriber growth, and creator community engagement.
With strong financials and a refreshed organizational framework, YouTube appears to be setting the stage for sustainable growth and faster innovation heading into 2025.
