Verily, Alphabet’s life sciences company, has cut staff and closed down its long-running devices program, Business Insider has learned.
The cuts were announced internally on Monday, according to a memo sent to staff by CEO Stephen Gillett and obtained by Business Insider.
Verily, which began life as a moonshot inside Google’s X lab, has been on a journey to cut costs and streamline projects. The group has refocused its strategy around AI and developing infrastructure for other companies to lean on, Business Insider previously reported.
Gillett told staff that a “significant part” of the changes were due to a decision to wind down Verily’s devices program, which was responsible for an array of projects including a clinical study watch, a retinal camera, and a partnership with Dexcom for its wearable glucose sensor.
“Over the years, Verily has built a legacy in developing world-class, innovative medical devices,” Gillett wrote in the email. “The dedicated professionals in our Devices organizations — many who have devoted a decade or more to this important work — have poured their hearts, expertise, and commitment into advancing healthcare technology.”
The exact number of employees cut could not be learned.
“As part of normal business operations, we continue to make deliberate choices about resourcing where we can have the greatest impact and to put ourselves on a faster path to sustained commercial success,” a Verily spokesperson told Business Insider. They added that Verily has been on a strategic refocus since 2023 that has involved streamlining and simplifying the business.
“We have made the difficult decision to discontinue manufacturing medical devices and will no longer be supporting them going forward.” they added.
While it is still owned by Google’s holding company, Alphabet, Verily has been gradually detaching from the technology and services it long shared with Google. Company leaders have told staff that the efforts are important to one day becoming a fully independent company.
The company also sold its insurance business to Elevance Health earlier this year, Business Insider previously reported. Some staff benefits have been cut in recent months while employee salary bands have been re-benchmarked to the healthcare, rather than technology, industry, according to two employees familiar with the changes.
Here’s the full memo sent by Gillett to Verily employees on Monday:
Veeps,I’m writing to share some difficult news. Today we have made workforce reductions across the company as part of our ongoing efforts to manage costs and ensure resources are allocated to our most critical priorities. All impacted Veeps have been notified.These are not decisions we’ve taken lightly, and I want to address both those who will be impacted and those who will continue with us on Verily’s journey.A significant part of these changes is the decision to wind down our Devices program. Over the years, Verily has built a legacy in developing world-class, innovative medical devices. The dedicated professionals in our Devices organizations — many who have devoted a decade or more to this important work — have poured their hearts, expertise, and commitment into advancing healthcare technology. To everyone who contributed to this program, whether as a core team member or in a supporting role across the company, your efforts have been extraordinary. You’ve led groundbreaking achievements, from the launch of the Dexcom G7 CGM, to the Stargazer VNRC launch with other 7,800 patients screened, to Study Devices launched with numerous study partners, and these contributions have advanced patient care and medical research.As Verily has continued on its journey of narrowing product focus around our precision health platform, and data and AI strategy, we cannot support the investment of the resources necessary for the long-term growth and scaling of our Devices programs, and have therefore made the difficult decision to fully wind down the program. We will continue to honor our commitments by supporting customers using the Numetric Watch in active clinical trials.To all of our departing Veeps: Your contributions to programs across our business have been invaluable to Verily’s mission and have made a lasting mark on the healthcare technology landscape. The innovation, dedication, and collaborative spirit you’ve brought to your work have advanced our company and touched many lives. We are grateful for everything you’ve given to Verily and to the patients and partners we serve together.To our continuing team members: I know this news is difficult to process, especially as we say goodbye to colleagues and friends. Your continued dedication during this transition period is both appreciated and essential as we focus our efforts on our core mission. The work ahead of us in precision health, data, and AI remains as important and exciting as ever, and we need your expertise and commitment to continue making a meaningful different in healthcare. We will be providing additional details about what today’s changes mean for Verily and for you and your teams in the coming days, both within your respective functions and in our next town hall.During this challenging time, I ask for your patience and understanding as we prioritize supporting our departing colleagues in the days ahead. To everyone — whether you’re leaving us or continuing with Verily — thank you for your professionalism, your contributions, and your commitment to our shared mission of using technology to improve human health.The path forward requires difficult decisions, but I remain confident in Verily’s future and grateful for the exceptional team that will continue building it.Stephen
