Alphabet Verily Shuts Down Medical Device Division in Strategic Pivot
Alphabet’s life sciences subsidiary, Verily, has closed its medical device division and laid off an undisclosed number of employees. The move marks a significant retreat from its ambitious hardware projects, which once included developing connected diabetes therapies and robotic surgery systems.
A company spokesperson confirmed the decision, stating that Verily made the difficult choice to discontinue manufacturing medical devices and will no longer support them in the future. This action is part of a broader strategic shift within Alphabet that began in 2023, which saw the parent company cut 12,000 jobs across its various divisions to reallocate resources toward artificial intelligence and data infrastructure.
In an internal memo, Verily CEO Stephen Gillett reflected on the division’s achievements. He highlighted the successful launch of the Dexcom G7 continuous glucose monitor for diabetes management and the Stargazer VNRC system for targeted drug delivery, which screened thousands of patients. Gillett noted that these contributions have significantly advanced patient care and medical research.
Despite these technological advancements, the medical device unit was reportedly not a profitable venture for Alphabet. The closure signals a refocusing on what the company now defines as its core mission. Verily will pivot its entire efforts toward precision health, data analytics, and AI development, moving away from the capital-intensive process of building physical hardware.
This decision underscores the challenges even well-funded tech giants face when entering the highly regulated and complex medical device market. For Verily, the future now lies in software and data-driven solutions, leaving its moonshot hardware dreams behind.
