Google's hardware division faces setback with massive layoffs and leaders exit
Google's hardware division has suffered a significant setback, confirming the layoffs of hundreds of hardware workers, particularly within its augmented reality (AR) division.
Fitbit co-founders James Park and Eric Friedman, along with other Fitbit leaders, are reportedly departing from the company.
"A few hundred roles are being eliminated in DSPA, with the majority of impacts on the 1P AR Hardware team. While we are making changes to our 1P AR hardware team, Google continues to be deeply committed to other AR initiatives, such as AR experiences in our products, and product partnerships,” Google's statement to 9to5Google read, according to The Verge.
This development signals a probable transformation for Fitbit, occurring just over four years after Google's $2.1 billion acquisition of the company in November 2019. The revelation isn't entirely unexpected.
As the tech giant's struggles with Fitbit started last year, highlighting issues such as feature removals, prolonged outages, and a subtle shift towards promoting the Pixel Watch over Fitbit bands, The Verge revealed in its report. The company even quietly withdrew Fitbit products from more than a dozen countries.
On the other hand, Google's spokesperson insisted that Fitbit will endure. “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 redesigned Fitbit app, Fitbit Premium service, and the Fitbit tracker line. This work will continue to be a key part of our new org model,” said Mencini.
Google's AR initiatives also face uncertainty, with the departure of Clay Bavor and Mark Lucovsky from the AR tech team. Reports indicate the demise of Project Iris augmented reality glasses, and the departure of Stephen Lake, co-founder of AR glasses company North, acquired by Google in 2020.
The statement about the 1P AR hardware team indicated reduced investment in developing Google's own glasses. Collaborations with Samsung and Qualcomm on headsets have been acknowledged, but the outcomes remain unseen, with some reports suggesting challenges in the Samsung partnership.
Google hasn't clarified whether it's abandoning its AR hardware efforts and hasn't directly confirmed the departure of Fitbit leaders. "As we’ve said, we’re responsibly investing in our company’s biggest priorities and the significant opportunities ahead. Throughout the second half of 2023, a number of our teams made changes to become more efficient and work better, aligning their resources with their biggest product priorities. Some teams are continuing to make these kinds of organisational changes, including some role eliminations globally. We’re continuing to support impacted employees as they explore new roles at Google and beyond,” said the company.
Additionally, impacted employees can apply for open roles across Google, receiving support, including outplacement services and severance offerings, in accordance with local requirements. Google's recent layoffs align with broader industry trends during this season.