Alphabet Shifts Focus to AI, Shuts Down Verily Medical Devices
▼ Summary
– Verily, Alphabet’s life sciences arm, laid off staff and eliminated its entire devices program.
– CEO Stephen Gillett announced this decision in a memo, citing a refocus on AI and data infrastructure.
– This move is part of Alphabet’s broader strategy to invest in AI while cutting costs in other areas.
– Alphabet has conducted multiple rounds of layoffs recently, including cutting 12,000 jobs in January 2023.
– The generative AI boom, sparked by ChatGPT’s rapid growth, is driving the tech industry’s current priorities.
Alphabet’s life sciences division, Verily, has made a significant strategic pivot by discontinuing its medical devices program and implementing staff reductions. This move reflects the parent company’s intensified focus on artificial intelligence and data infrastructure, signaling a broader realignment within the tech giant’s priorities.
According to an internal memo from CEO Stephen Gillett, the decision to wind down the devices initiative was described as difficult but necessary. Gillett acknowledged Verily’s history of creating advanced medical technologies but emphasized that the organization must now concentrate its resources on AI-driven solutions. This shift is part of Alphabet’s ongoing effort to streamline operations and invest heavily in areas with the highest growth potential, particularly artificial intelligence.
The restructuring at Verily aligns with a series of cost-cutting measures Alphabet has undertaken over the past year. Earlier in February, the company reduced headcount in its human resources and cloud divisions, and it offered voluntary departure packages to employees in its Platforms & Devices segment, which employs more than 25,000 people. These actions follow even larger layoffs in January 2023, when Alphabet eliminated 12,000 positions, approximately 6% of its workforce, in response to anticipated economic challenges.
The timing of these strategic changes coincides with the explosive rise of generative AI, catalyzed by the rapid adoption of platforms like ChatGPT. That application reached 100 million users in just two months, shattering previous records and fundamentally reshaping investment strategies across the technology sector. Alphabet’s renewed emphasis on AI underscores its commitment to remaining competitive in a landscape increasingly dominated by intelligent systems and data-centric innovation.
(Source: TechCrunch)
