Verily Closes Medical Device Program, Focus Shifts to AI

Verily Restructures, Discontinues Devices Program

Verily, the life sciences division of Alphabet, has recently undergone restructuring, resulting in staff reductions and the complete cessation of its devices program.

Program Discontinuation Announced

The decision to wind down the devices program was communicated to staff by CEO Stephen Gillett in a memo, as reported by Business Insider. This was described as a “difficult decision” by the company’s leadership.

Gillett acknowledged the program’s history of innovation in medical device development. However, he indicated that a revised strategic direction, concentrating on AI and data infrastructure, necessitates these changes.

Alphabet’s Broader Cost-Cutting Measures

This move aligns with Alphabet’s wider strategy of prioritizing investment in artificial intelligence while simultaneously reducing operational expenses.

Multiple rounds of layoffs have been implemented across various Alphabet divisions in recent times. These included reductions within the Human Resources and cloud computing sectors in February.

Significant Layoffs in Recent Years

Furthermore, voluntary exit programs were offered to employees within the Platforms & Devices organization, which comprises over 25,000 individuals, during the spring season.

A substantial layoff event occurred in January 2023, impacting 12,000 positions – representing 6% of the total workforce – in anticipation of potential economic challenges.

The Rise of Generative AI

The timing of these changes coincides with the rapid growth of generative AI. ChatGPT, for example, achieved unprecedented user adoption, surpassing 100 million users within just two months of its launch.

This surge in AI popularity has fundamentally reshaped the priorities of the technology industry, driving increased investment and resource allocation towards this field.