Following a restructuring move, Verily, the healthcare unit of Alphabet, is laying off 15 percent of its workforce. The job cut will affect around 240 employees, according to a Verily spokesperson.
The job cut is the first major staff reduction to hit Alphabet amid many recent layoffs at other technology companies.
Verily's Job Cut is Part of a Broader Reorganization in the Company
CEO Stephen Gillett announced the impending layoffs to the employees on Wednesday via email.
According to CNBC, the job cut is part of a broader reorganization as the company strives for financial independence from its parent company.
As part of the changes in Verily, the company will discontinue the development of Verily Value Suite as well as some of the "early-stage products," according to Gillett.
The company will then be shifting to a centralized product organization with "increasingly connected healthcare solutions," as per The Wall Street Journal.
In the email, Gillett also provided details for the new leadership team. He noted that the company is planning to hire a new chief scientific officer. Similarly, it is continuing its search for a new CFO.
He also wrote that they are making changes that refine their strategy, prioritize their product portfolio and simplify their operating model. Likewise, the company is planning to advance fewer initiatives with greater resources.
In addition, in the email, he instructed employees to work from home for the remainder of the week as Verily's physical offices will be closed on Thursday and Friday.
Gillett announced Verily's layoffs just over a week after he assumed the CEO position in the company. He took over as CEO from Andy Conrad on January 3. Previously, he was Verily's COO and president.
Verily is originally known as Google Life Sciences. The company is one of the largest businesses other than Google under Alphabet. It is part of the group of companies known as "Other Bets."
One of Verily's projects includes a contact lens that can detect diabetes symptoms but this was halted in 2018. Another is Project Baseline, an effort to aggregate health data with research organizations.
The company also provided a Covid-19 testing platform. At the beginning of the pandemic, then President Donald Trump highlighted Verily's testing platform.
Read Also: Google Life Sciences Division Renamed As Verily
Intrinsic, Another Alphabet Company, is Also Laying Off Employees
Aside from Verily, Intrinsic, another Alphabet company, is laying off 40 employees or 20 percent of its staff. Intrinsic is a company that focused on software for industrial robots.
According to The Verge, Intrinsic spokesperson Scott Coriell confirmed the layoffs and the number of affected employees.
In a statement, Coriell said that the company's decision was made in light of shifts in prioritization and longer-term strategic direction.
The job cut will ensure that Intrinsic can continue allocating resources to its highest priority initiatives, such as building software and AI platform, as well as integrating the recent strategic acquisitions of Vicarious and OSRC.
Likewise, the decision will enable the company to continue working with key industry partners.
Coriell said that the job cut was a difficult decision to do but it is necessary for the company to continue its mission.
As of writing, it is unclear whether Google or other Alphabet-owned companies are planning any further layoffs.
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