In a surprising turn of events, Google has confirmed significant layoffs within its hardware division, particularly impacting the augmented reality (AR) sector and signalling potential changes for Fitbit. The move comes amid broader organizational adjustments and challenges in the wearables space.
Google has officially acknowledged that it is laying off hundreds of hardware workers, with a primary focus on its 1P AR Hardware team. This decision raises questions about the company’s commitment to developing its own AR hardware, as the majority of the impacts seem to be concentrated within this team.
The AR sector at Google has faced uncertainties since the departure of Clay Bavor, the former head of AR technology, in February last year. Additionally, the exit of Stephen Lake, co-founder of AR glasses company North, which Google acquired in 2020, adds to the list of challenges in maintaining a cohesive AR strategy.
Notably, Fitbit co-founders James Park and Eric Friedman, along with other Fitbit leaders, are reportedly leaving the company entirely. This comes just over four years after Google acquired Fitbit for a staggering $2.1 billion in November 2019.
Fitbit users have been experiencing disruptions, with Google axing beloved features and facing multi-day outages. The company’s subtle withdrawal of Fitbit products from over a dozen countries has also added to concerns about the future of the fitness tracker brand.
Despite the leadership departure, Google insists that Fitbit will continue to exist. A spokesperson emphasized the commitment to serving Fitbit users and innovating in the health space. The announcement of the Pixel Watch, a redesigned Fitbit app, Fitbit Premium service, and the Fitbit tracker line suggests Google’s determination to persist in the wearables and health technology market.
In a statement to The Verge, Courtenay Mencini, a Google spokesperson, stated, “We remain very committed to serving our Fitbit users well, innovating in the health space with personal AI, and building on the momentum with Pixel Watch.”
The restructuring within Google’s hardware division may have financial implications. With the current exchange rate of $1 to R19, the layoff decisions and potential shifts in product strategies could impact the company’s overall financial performance. Investors and industry analysts will be closely watching how these changes unfold in the coming months.
Google’s hardware division isn’t the only area undergoing adjustments. The company has been making organizational changes throughout the second half of 2023. This “postpandemic reckoning” has seen numerous tech workers let go during the winter season, reflecting a broader trend in the tech industry.
In response to inquiries about the layoffs and organizational changes, Google stated, “We’re responsibly investing in our company’s biggest priorities and the significant opportunities ahead.” The company highlighted its commitment to supporting impacted employees, offering them opportunities to apply for open roles across Google, outplacement services, and severance offerings.
As the affected employees explore new roles within and outside Google, the company is underlining its dedication to helping them navigate these transitions in line with local requirements.
The developments within Google’s hardware division, especially in the AR sector and the Fitbit team, indicate a strategic shift and potential challenges in maintaining a cohesive hardware strategy. Fitbit users and industry observers will be keenly watching how Google navigates these changes and whether the promises of continued innovation in health tech and wearables come to fruition. As the company emphasizes responsible investment, only time will tell the full extent of the impact on Google’s hardware ambitions.
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