Alphabet’s life sciences subsidiary, Verily, announced the closure of its medical device program on Monday, resulting in staff layoffs. CEO Stephen Gillett shared this challenging decision in a memo to employees, as reported by Business Insider.
Gillett highlighted the impressive legacy that Verily has created in crafting innovative medical devices. However, he noted that the company’s future direction necessitates tough choices as it pivots its focus toward artificial intelligence and data infrastructure.
This strategic shift reflects Alphabet’s broader commitment to investing in AI while streamlining costs in other areas. The tech giant has undertaken several rounds of layoffs over the past few years, including job cuts in its HR and cloud sectors earlier this year, as well as voluntary exit programs affecting over 25,000 workers in its Platforms & Devices division.
The most significant layoffs occurred in January 2023, when Alphabet reduced its workforce by 12,000 jobs, equating to 6% of its total employees, amid concerns over an impending economic downturn.
Coincidentally, January also marked a pivotal moment in technology, as ChatGPT emerged as the fastest-growing consumer software application ever, attracting over 100 million users within just two months and sparking the current generative AI movement reshaping the industry.
