Verily lays off 15% of workers months after raising $1B
Verily, the life sciences subsidiary of Google parent company Alphabet, is laying off 15% of its workforce just months after raising $1 billion in a funding round.
The cuts affect approximately 240 employees and were announced in an email to staff from CEO Stephane Gillet. The email also reportedly instructed staff to work from home for the rest of the week, with the offices being closed Thursday and Friday.
The layoffs come just a few months after Verily raised $1 billion in an investment round led by Alphabet. At the time of the investment round, Verily said the $1 billion would be used to expand its business in precision health.
The decision to cut 15% of the staff also comes as the U.S. healthcare industry is facing a staffing crisis, with many healthcare providers having trouble filling vacant roles. The staffing shortage has been front and center for a handful of hospitals among nurses. The issue was part of the recent contract negotiations and a three-day strike between New York City nurses and two city hospitals this past week.
In addition to the layoffs, Verily announced other organizational changes.
“We are making changes that refine our strategy, prioritize our product portfolio and simplify our operating model,” Gillett said in his email. “We will advance fewer initiatives with greater resources. In doing so, Verily will move from multiple lines of business to one centralized product organization with increasingly connected healthcare solutions.”
The company will specifically focus on AI and data science to accelerate learning and improving outcomes, with advancing precision health being the top overarching goal. In addition, the company will simplify how it works, “designing complexity out of Verily.”
Among its product portfolio, Verily plans to “do fewer things” and focus its efforts within research and care. The company is “discontinuing the development of Verily Value Suite and some early-stage products, including our work in remote patient monitoring for heart failure and microneedles for drug delivery,” Gillet said. By eliminating Verily Value Suite, some staff will be redeployed elsewhere, while others will leave the company, Gillet said.
The 15% of eliminated staff include roles within discontinued programs and redundancy within the new, simplified organization. Gillet also announced leadership changes, including expanding the role of Amy Abernethy to become president of product development and chief medical officer. Scott Burke will expand his responsibilities as chief technology officer, adding hardware engineering and devices teams to his responsibilities, as well as serving as the bridge between product development and customer needs. Lisa Greenbaum will expand her responsibilities in a new chief commercial officer role, overseeing sales, marketing and corporate strategy teams.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."