That is not quite the right word. For Python, the headcount was moved from the Bay Area (the most expensive place in the world to hire software engineers) to Munich (the most expensive place in Germany to hire SWEs.), for cost saving reasons.
Even if the best SWEs are better in the Bay area, there's also a lot more competition for them, so Google in Germany might be able to get top 1% there (and in neighboring countries) but Google in the Bay Area is probably having a tough time getting even top 10%.