Verily, a subsidiary of Alphabet, has announced a significant restructuring that will result in a 15% reduction of its workforce. CEO Stephen Gillett shared the news in an email to employees, revealing that 240 positions will be eliminated as part of the company’s effort to achieve financial independence from Alphabet, its parent company.
This marks the first major layoff within Alphabet’s various business units amid broader concerns about economic slowdown and potential recession. Gillett’s email advised employees to work remotely for the remainder of the week, noting that Verily’s physical offices would be closed on Thursday and Friday. Employees at Google offices who work for Verily were also encouraged to return home.
Verily, which operates under its own ownership structure as part of Alphabet’s “Other Bets,” has been seeking external funding for years. In 2017, the company secured $800 million from Temasek and has since raised over $2 billion in additional equity rounds.
The layoffs are reportedly due to redundancies within teams and the discontinuation of certain programs. Gillett stated that the company will offer severance packages and outplacement support in the coming weeks and months. Additionally, an all-hands meeting is scheduled for January 18 to discuss the restructuring in more detail.
The email also mentioned the departure of Jordi Parramon, president of Verily’s device companies, who has been with the company since its early days, along with other senior leadership changes.
Employees affected by the layoffs will receive an email titled “Important Update Regarding Your Role.” For those outside the United States, local business leaders will reach out directly. Gillett acknowledged that communicating such news via email is not ideal but emphasized the need for efficiency and simultaneous communication. He assured that personal discussions with leaders and HR partners will follow to provide support during the transition.
As Verily moves into its next chapter, Gillett emphasized the company’s commitment to its core mission of advancing precision health. The restructuring aims to build a financially independent company while fostering a thriving corporate culture. Verily plans to focus on strengthening the data and evidence backbone that bridges the gap between research and patient care.
Both Verily and Alphabet have declined to offer further details at this time.
