In a note to employees, CEO Stephen Gillett called it a difficult decision, and affirmed that Verily had left its mark with many advanced medical devices. However, according to him, the new direction forces the company to focus resources on artificial intelligence and data infrastructure.
This move reflects Alphabet's overall strategy of accelerating investment in AI and cutting costs in other segments. Previously, the group has restructured many times, including cutting staff in February 2025 and implementing a voluntary severance pay program for more than 25,000 employees on the platform and equipment.
The biggest layoff came in January 2023, when Alphabet cut 12,000 jobs, or 6% of its workforce, amid concerns about an economic downturn.
At the same time, ChatGPT exploded, reaching 100 million users in just 2 months of launch. This event is considered a turning point, motivating technology companies, including Alphabet, to reshape their strategies with a top priority for AI.
