Alphabet’s Verily shuts medical device programme, cuts staff
Layoffs a result of cost management and focus towards ‘most critical priorities’, CEO told staff.
Alphabet’s life sciences company Verily is laying off staff and shutting down its entire devices program. The exact number of staff affected in this move is unclear.
The news was first reported by Business Insider which obtained the memo sent to staff announcing the decision. In it, CEO Stephen Gillet said that the move was a result of “ongoing efforts to manage costs and ensure resources are allocated to…[their] most critical priorities”.
“As Verily has continued on its journey of narrowing product focus around our precision health platform and data and AI strategy, we cannot support the investment of the resources necessary for the long-term growth and scaling of our devices programs, and have therefore made the difficult decision to fully wind down the program,” Gillet wrote.
A “significant” part of the workforce reductions come as a result of the program being shut down, he said.
Verily began as a moonshot inside Google’s X lab in 2015 and develops tech-driven healthcare solutions. The company has been cutting costs and streamlining projects while refocusing its strategy around AI for a while, reports suggest.
While still owned by Alphabet, company leaders told staff that the efforts are important to one day cut ties with Google and become a fully independent company, Business Insider previously reported. Employees have told the news publication that some staff benefits have also been cut in recent months.
Earlier this year, Verily sold its insurance business Granular Insurance Company, which was launched in 2020, to Elevance Health.
In 2023, the company laid off 15pc of its staff, amounting to 240 employees alongside another Alphabet subsidiary Intrinsic.
Google has laid off staff in a number of instances over the past few years, including in its HR and cloud units this February, while announcing buyouts for its Platforms and Devices unit which staffs more than 25,000 full-time employees who work on Android, Chrome, ChromeOS, Google Photos, Google One, Pixel, Fitbit and Nest. In 2023, the company laid off 12,000 employees.
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