As we welcome a new year, the tech industry is still grappling with the challenges that have been plaguing it for quite some time now. Despite the optimism that comes with each passing year, the struggles of big firms are showing no signs of abating. This week, Alphabet has joined the growing list of tech giants making staff cuts amid ongoing economic struggles. Following a wave of layoffs from Amazon, Meta, and Salesforce, Alphabet has begun letting people go.
Alphabet’s ‘Other Bets’ Division Takes the Brunt
The company’s ‘Other Bets’ division is the first to see impact. As the name not so subtly implies, these divisions operate outside key focuses like search and ads. With many of the firms having graduated from the Alphabet X moonshot factory, the operation has taken on an almost in-house accelerator style role.
Verily Takes a 15% Hit
Earlier this week, life science firm Verily got hit with a 15% cut, amounting to around 240 people. "While these programs are promising and led by talented Veeps, and some of their innovations will integrate into our other core solutions, we cannot do everything and have had to make some difficult choices," CEO Stephen Gillett said in a blog post. "Some Veeps will be redeployed to other teams; others will unfortunately be leaving us. These people have helped make Verily the company it is today, and I know how hard it is to see valued friends and colleagues depart."
Intrinsic Also Impacted
Alphabet’s robot software firm, Intrinsic, has also been impacted. It will be laying off 40 employees TechCrunch has confirmed. It’s a big hit for the young division, amounting to around 20% of headcount. It’s also, frankly, a bit of an about-face for an area that appeared to be growing quickly. In fact, our last two conversations with the company have centered around acquisitions.
Acquisitions and Restructuring
In less than a year, Intrinsic has acquired both Vicarious and Open Robotics—the latter having been announced less than a month ago. "Intrinsic’s leadership has made the difficult decision to let go a number of our team members," a spokesperson told TechCrunch. "We have communicated the news directly with them. We fully acknowledge how hard this will be and are offering as much proactive support as possible."
The Reason Behind the Decision
This decision was made in light of shifts in prioritization and our longer-term strategic direction. It will ensure Intrinsic can continue to allocate resources to our highest priority initiatives, such as building our software and AI platform, integrating the recent strategic acquisitions of Vicarious and OSRC (commercial arm Open Robotics), and working with key industry partners.
Impact on the Industry
At the very least, it’s a big hit for an organization just getting its sea legs. There are a lot of companies competing in the same space as Intrinsic, so it’s hard to say how much of a step back such news will ultimately be.
Alphabet X Graduates Robotic Agtech Firm Mineral
Earlier this week, fellow X robotics alum Mineral announced that it had just graduated from the lab. This development is a testament to the success of Alphabet’s moonshot factory and its ability to foster innovation in the tech industry.
The Broader Implications
As we reflect on the recent layoffs and restructuring efforts within Alphabet, it’s clear that the company is not immune to the challenges facing the tech industry as a whole. The decision to cut staff may seem daunting, but it’s a necessary step towards ensuring the long-term success of these innovative ventures.
What’s Next for Alphabet?
As we look ahead to what’s next for Alphabet, it’s essential to remember that innovation and disruption are an integral part of the company’s DNA. Despite the setbacks, Alphabet remains committed to pushing the boundaries of what is possible in the tech industry.
