Verily is closing its medical device program as Alphabet shifts more resources to AI

Alphabet’s life sciences arm Verily laid off staff and eliminated its entire devices program Monday.

CEO Stephen Gillett announced the “difficult decision” to wind down the program in a staff memo, according to Business Insider.

“Over the years, Verily has built a legacy in developing world-class, innovative medical devices,” Gillett wrote, noting that the “path forward requires difficult decisions” as Verily refocuses on AI and data infrastructure.

The move continues Alphabet’s aggressive efforts to invest in AI while cutting costs elsewhere. The company has conducted multiple rounds of layoffs in recent years, including cuts to its HR and cloud units in February and voluntary exit programs for its more than 25,000 Platforms & Devices employees in spring.

Alphabet’s biggest recent layoffs came in January 2023, when it slashed 12,000 jobs — 6% of its workforce at the time — in anticipation of an economic slowdown.

That same month, ChatGPT became the fastest-growing consumer software application in history, gaining over 100 million users in two months and kicking off the generative AI boom that today drives the tech industry’s priorities.