Google uses labels rather than folders and although they look similar, they have distinct differences. Remember, you always only have 1 copy of any email in your inbox. If you want to organize your inbox into different views, you can apply labels to specific groups of messages. Labels can be created, edited and deleted with no effect on the message itself.
Note: If you delete a message, it will be erased from every label that it’s attached to and your entire inbox. If you want to remove an email from a 'folder', you would remove the label on that email.
With Connect Google Workspace, you can "archive" a message when you're done with it rather than deleting it. Google archiving removes messages from your Inbox, but keeps them in your account so that you can always find them later. The "Inbox" is also a label. Archiving only removes that label. The message is still in "All Mail" and retains any other labels it may have as well.
Note: this archiving is different from the "auto-archiving" of older messages performed by the 3rd party clients. Google archiving is done by you.