Google’s life sciences subsidiary Verily announced major layoffs on Monday. The company eliminated its entire medical device program after years of development work.
CEO Stephen Gillett shared the decision in an internal memo to staff. He told employees called “Veeps” that workforce reductions were made across the company.
Gillett acknowledged the difficulty of the decision in his message. He wrote that “the path forward requires difficult decisions” as part of cost management efforts.
The company laid off workers across multiple medical device teams. Many employees had devoted “a decade or more” to developing healthcare technology, according to the CEO memo.
Verily developed various medical devices including glucose monitors and retinal imaging tools. The team created the Dexcom G7 continuous glucose monitor and clinical study wearables over many years.
Gillett praised the departing workers for their dedication to advancing healthcare technology. He said they “poured their hearts, expertise, and commitment” into developing innovative medical devices.
The CEO highlighted major achievements from the devices program in his memo. The Stargazer retinal camera screened over 7,800 patients and study devices launched with numerous research partners.
Verily confirmed it will stop manufacturing and supporting medical devices going forward. The company has not disclosed the exact number of employees who were laid off.
A Verily spokesperson told Business Insider the company is making “deliberate choices about resourcing.” These decisions aim to accelerate the path to commercial success in other areas.
The shutdown represents a major shift toward artificial intelligence and data analytics. Verily wants to focus resources on its “precision health platform and data and AI strategy.”
Gillett explained that the company cannot support the investment needed for device programs. He said scaling the devices division would require resources that Verily no longer wants to allocate.
The company will honor existing commitments to customers using devices in active trials. Verily plans to continue supporting the Numetric Watch for ongoing clinical research studies.
This decision follows broader cost-cutting measures across Google’s parent company Alphabet. The tech giant has conducted multiple rounds of layoffs since early 2023.
Alphabet cut 12,000 jobs in January 2023, representing 6% of its total workforce. The company has continued eliminating positions across various divisions throughout 2024 and 2025.
These cuts coincide with massive investment in artificial intelligence capabilities across the industry. Companies are shifting resources from other projects to compete in the growing AI market.
Verily originally started as a moonshot project inside Google’s experimental X lab. The company became an independent Alphabet subsidiary in 2015 with a focus on healthcare technology.
The memo acknowledged the emotional impact on remaining employees saying goodbye to colleagues. Gillett asked for patience and understanding during the transition period ahead.
Industry analysts say this reflects broader changes across Silicon Valley technology companies. Firms now face difficult choices between spreading resources across projects or concentrating on AI development.
The global medical device market continues growing and is expected to reach $671 billion by 2025. However, Verily decided that AI and data analytics offer better returns on investment.
Gillett emphasized that remaining work in precision health and AI remains important and exciting. He said the company needs expertise and commitment to continue making meaningful differences in healthcare.
The decision removes a well-funded competitor from the medical device space completely. Smaller companies and startups may now have more opportunities in healthcare technology development.
This strategic pivot shows how AI competition has reshaped priorities at major tech companies. Even promising healthcare projects face elimination when resources shift toward artificial intelligence infrastructure.
