Google Confronts the Exodus to AI Startups OpenAI and Anthropic

Google's Status as a Dream Employer is Evolving

Google's reputation as one of the most prestigious employers in the tech industry is undergoing a significant transformation, particularly in the era of artificial intelligence (AI). Voices are emerging from current and former employees to highlight that this brand image has become more complex. AI-focused startups, waves of layoffs, and a growing desire to make a tangible difference in the professional world are redefining career choices.

Earning nearly a million dollars a year was not enough to keep Yousuf Imran at Google. In 2026, he earned $986,000 as a business executive at the tech giant, primarily through sales commissions, in addition to a base salary of around $170,000. However, the allure of potentially transformative earnings generated by the AI boom outside of major tech companies was too strong to ignore.

“Google pays very well, but the equity packages at OpenAI and Anthropic are in a different universe,” said Imran, 41, who resides in the San Francisco Bay Area. At the same time, witnessing talented colleagues lose their jobs in recent years has eroded his confidence in long-term job security. In April, after working on AI projects on the side, Imran left Google to launch a startup focused on AI-based sales tools.

A Declining Reputation

For a long time, Google's reputation as a workplace was almost as iconic as its search engine. Its vast campuses, generous benefits, and the opportunity to contribute to products used by billions made it one of the most sought-after employers in the world. While this reputation persists, it has become more complicated for some employees.

Interviews with twelve current and former Google employees — six of whom recently left the company — reveal that the AI boom has created irresistible opportunities for some Googlers. In recent weeks, the company has seen several of its top AI researchers leave to join OpenAI and Anthropic.

However, the AI boom is not the only reason for these departures. Years of layoffs, changes in workplace culture, and other developments have also led employees to question whether Google remains the best place to build their careers.

Google No Longer Seems Like a Safe Choice

Google has long been the most attractive employer for business students, according to employer branding firm Universum. However, in 2022, it was relegated to second place behind Apple. In the United States, Google dropped from first to fifth place among business students in 2023, although it remains the most attractive employer among information technology students.

Job security is a crucial factor for current and potential employees. Between its founding in 1998 and 2022, large-scale layoffs were rare at Google. In 2023, the company cut about 12,000 positions, or approximately 6% of its workforce. Other waves of layoffs and voluntary departures followed as Google redirected its resources toward AI, reduced management levels, and recalibrated after the massive hiring of the pandemic era.

Yousuf Imran stated that the AI boom and recent layoffs influenced his decision to leave Google. For some employees, these repeated cuts have fundamentally changed their perception of career stability at Google.

About six months after Joslyn Orgill started as a data engineer at Google, the company announced its 2023 layoffs. Although Orgill retained her job, she said that the layoffs were part of the reasons she left last year to pursue a PhD in computer science. Taylor M. LaSane was among the employees who accepted a voluntary departure last year. She had already considered focusing on her career coaching business, which she had launched three years earlier, but said that the repeated layoffs made her departure from Google less risky than it would have been in the past.

Seeking Greater Impact

Google still offers many generous benefits that contributed to its reputation as an employer. However, some employees feel that the work experience has changed in certain aspects over the years. The company has cut back on some office services and budgets, including reducing the hours of some office cafes in 2023 as part of cost-cutting efforts. Some employees have also reported that budgets for certain travel, team events, and holiday celebrations have tightened, while work-from-home policies have become more restrictive.

For some employees, one of the qualities that made Google such an attractive employer — its scale and reach — also makes it harder to see the direct impact of their own work. “In a large tech company, you are just a piece of a very large machine,” said Aashna Doshi, who left Google in May to launch an AI startup. “I wanted to be able to make decisions, act quickly, and see the direct results of my work.”

For Doshi, the opportunity to build something personal ultimately outweighed the security of staying at Google. “The scariest version of that decision wasn’t leaving Google,” she said. “It was staying and always wondering what could have been.”

The AI Boom is a Game Changer

Many changes redefining Google are not unique to the company. Tech workers have navigated layoffs, changes in work policies, and the rapid rise of AI. For many employees, Google remains one of the most desirable places to build a career in technology.

However, as OpenAI and Anthropic move toward potential IPOs, the prospect of equity before going public has become a powerful incentive for some workers. Career coach Sundeep Teki previously told Business Insider that nearly all job seekers in AI he speaks with want to work for one of the two companies.

While some Google employees have expressed frustration over more modest pay raises, the company's six-figure salaries and generous stock grants remain the envy of much of the corporate world. A Google spokesperson previously told Business Insider that the company remains confident in its ability to attract and retain talent.

However, for some former Googlers, even Google's generous compensation is not enough to offset the opportunities created by the AI boom — whether by joining a fast-growing AI company or building one of their own. “If the only way to gain a real advantage in this moment of AI is equity, at some point, you wonder if that equity shouldn’t be in your own company,” said Imran.