Published - January 12, 2023 @ 3:07 PM (EET)
Google parent Alphabet Inc.'s (NASDAQ:GOOGL) life sciences unit, Verily, is cutting 15% of jobs in a restructuring move as it strives for financial independence, according to an email to employees on Wednesday.
The layoffs will affect over 200 employees, with their work on a medical software program named Verily Value Suite and other early-stage products to discontinue, said CEO Stephen Gillett.
"We are making changes that refine our strategy, prioritize our product portfolio and simplify our operating model," Gillett said. "We will advance fewer initiatives with greater resources."
In addition, Alphabet's Intrinsic, an industrial robotics venture, also said Wednesday it had "made the difficult decision to let go of a number of our team members."
According to the emails, Gillett noted it would offer severance and outplacement services "in the coming weeks and months" but did not provide details.
Though other firms like Salesforce (NYSE:CRM), Amazon (NASDAQ:AMZN), and Meta Platforms (NASDAQ:META) have already announced plans to reduce headcount in response to worsening economic conditions significantly, it's the first layoffs to hit the Google parent company.
WHY IT MATTERS
By far, the most job cuts in 2022 were in the tech sector, up 649% compared to a year earlier to 97,171, according to the human-resources consulting firm Challenger Gray & Christmas Inc.
In December, at a companywide meeting, Google CEO Sundar Pichai said he couldn't make any forward-looking commitments in response to questions about layoffs.
He added that Google has tried to "rationalize where we can so that we are set up to better weather the storm regardless of what's ahead."
Alphabet shares were little changed in premarket trading. The tech behemoth didn't immediately respond to a request for comment early on Thursday.
PRICE ACTION: Based on 32 Analyst ratings covered by TipRanks in the last three months, Alphabet stock is a Strong Buy. The average price target of $125.94 implies an upside potential of 37.61%.
