YouTube is embarking on a transformative journey into artificial intelligence (AI), as CEO Neal Mohan outlined plans to position the platform at the forefront of this technological shift. In a memo to employees earlier in October, Mohan declared, "the next frontier for YouTube is AI", unveiling a significant reorganization of the company’s product and engineering divisions, which will take effect on November 5, 2025.
A New Organizational Structure
To better align YouTube with its AI-driven ambitions, the company will restructure its operations into three primary product organizations, all reporting directly to Mohan. Johanna Voolich will oversee Viewer Products, managing areas such as Search and Discovery, the Living Room app, infrastructure, and Trust and Safety. Meanwhile, the Creator and Community Products group, temporarily under Voolich’s leadership, will focus on YouTube Shorts, Live, and expanding generative AI tools to assist creators. Christian Oestlien will lead the Subscription Products division, handling YouTube Premium, Music, TV, and other over-the-top initiatives.
The company is also making internal changes to improve efficiency and collaboration. The UX organization, led by JT, will integrate with Scott’s engineering team to streamline processes. Similarly, the Shopping group, under Travis’s leadership, will continue to report to Scott. Mohan emphasized that these adjustments aim to strengthen decision-making, enhance accountability, and ensure high-growth areas receive the necessary focus and investment.
Voluntary Exit Program for Employees
As part of the restructuring, YouTube introduced a voluntary exit program for U.S.-based employees within Mohan’s direct reporting organization. The program offers eligible employees the option to leave the company with a severance package, although the precise number of eligible employees remains undisclosed. A YouTube spokesperson clarified that the program is voluntary and does not involve layoffs or role eliminations. Details of the program are being communicated individually to those eligible.
AI at the Core of YouTube’s Future
Mohan has been vocal about AI’s potential to transform YouTube’s platform and services. In an interview with The Hollywood Reporter, he stated, "AI in service of human creativity" is a central focus for the company. He explained how AI can enable creators to generate ideas, develop visuals, and enhance video production more efficiently. "I do think creation is an area where AI will help enormously by making the process easier, faster, and more powerful", Mohan added. The new Creator and Community Products organization will lead the development of these AI-powered tools.
This commitment to AI mirrors broader trends in the tech industry. Major companies like Amazon, Meta, Microsoft, and Google’s DeepMind also recently announced significant organizational changes to integrate AI into their operations. However, unlike many of these companies, YouTube’s approach does not involve layoffs, instead opting for voluntary departures to adjust its structure.
Financial Momentum at YouTube and Alphabet
The reorganization comes at a time of robust financial performance for YouTube’s parent company, Alphabet. The company recently reported its first-ever quarter with revenue exceeding $100 billion, with net income rising 33 percent year-over-year. YouTube contributed significantly to this growth, generating $10.26 billion in ad revenue during the third quarter of 2025, a 15 percent increase from the previous year and ahead of Wall Street expectations.
Acknowledging the platform’s success, Mohan highlighted YouTube’s evolution. The platform has paid more than $100 billion to its creators, maintained its position as the leading streaming service in the United States for over two years, and grown its user base to 125 million YouTube Premium and Music subscribers, along with 8 million YouTube TV subscribers. Despite this growth, Mohan noted that the core leadership structure "has not evolved in a decade", necessitating the reorganization to better align with the platform’s current scale and complexity.
Looking Ahead
In his memo to employees, Mohan expressed optimism about YouTube’s trajectory. "It’s an incredibly exciting time at YouTube, and many opportunities and challenges lie ahead", he wrote. "Looking to the future, the next frontier for YouTube is AI, which has the potential to transform every part of the platform." The changes, he noted, are designed to enable the company to "make the most of this opportunity" and ensure leadership teams are well-equipped to prioritize high-growth areas.
As YouTube moves forward with its restructuring, its focus remains clear: leveraging AI to enhance both content creation and user experiences, signaling a new chapter of innovation for the world’s largest video platform. The changes will officially take effect on November 5, 2025, marking the beginning of what Mohan described as "an incredibly exciting time at YouTube."
