Alphabet’s life sciences subsidiary Verily has shut down its medical device program and laid off staff, marking another shift in the company’s broader pivot toward artificial intelligence.
CEO Stephen Gillett informed employees of the decision in a memo, calling it a “difficult” but necessary move as Verily narrows its focus on AI and data infrastructure. “Over the years, Verily has built a legacy in developing world-class, innovative medical devices,” Gillett said, while acknowledging that the company’s future required sharper priorities.
The closure underscores Alphabet’s aggressive push into AI amid ongoing cost-cutting. In recent years, the company has reduced headcount across multiple divisions, including HR, cloud, and its Platforms & Devices unit. Its most significant cuts came in January 2023, when Alphabet eliminated 12,000 roles, about 6% of its workforce at the time.
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The timing coincided with the breakout success of ChatGPT, which gained 100 million users in just two months and ignited the generative AI boom that continues to reshape the tech industry.
