Alphabet’s life sciences division, Verily, laid off staff and eliminated its entire devices program on Monday. CEO Stephen Gillett announced this difficult decision to wind down the program in a staff memo, as reported by Business Insider.
Gillett wrote that over the years, Verily has built a legacy in developing world-class, innovative medical devices. He noted that the path forward now requires difficult decisions as the company refocuses its efforts on artificial intelligence and data infrastructure.
This move continues Alphabet’s aggressive strategy to invest heavily in AI while simultaneously cutting costs in other areas. The parent company has conducted multiple rounds of layoffs in recent years. This includes cuts to its HR and cloud units last February, as well as voluntary exit programs offered to its more than 25,000 Platforms and Devices employees this past spring.
Alphabet’s most significant recent layoffs occurred in January 2023, when the company slashed 12,000 jobs. This represented six percent of its workforce at the time, a move made in anticipation of an economic slowdown. That same month, ChatGPT became the fastest-growing consumer software application in history. It gained over 100 million users in just two months, kicking off the generative AI boom that now drives the tech industry’s priorities.