Google Restructures Healthcare Unit, Reduces Staff by 200

Alphabet Inc's GOOG GOOGL healthcare division Verily Life Sciences let go of more than 200 employees under a broader restructuring drive.
The downsizing will likely affect 15% of roles at Verily. The division will shut operations on a medical software program called Verily Value Suite and several early-stage products, the Wall Street Journal reported citing CEO Stephen Gillett's email.
Verily has over 1,600 employees.
Verily supervised a portfolio of healthcare projects primarily focused on applying data and technology to patient treatments.
Gillett's email read, "We will advance fewer initiatives with greater resources."
Originally known as Google Life Sciences, Verily is one of the largest businesses besides Google under the Alphabet umbrella, part of a group of companies called "Other Bets," WSJ writes.
Lately, Verily proposed to cut down on its huge collection of projects spanning insurance to mosquito breeding.
The reorganization reflected continued difficulties facing big tech companies trying to crack the healthcare industry.
Gillett wrote that Verily would primarily focus on products related to research and care while concentrating more on decisions in a central leadership team rather than individual groups.
Gillett took over as Verily CEO in January, succeeding Andy Conrad, who became executive Chair.
Activist investor TCI Fund Management called on Alphabet in November to reduce losses in Other Bets like Verily.
Alphabet's Other Bets recorded $1.6 billion in operating losses from $209 million in revenue during the third quarter last year, mainly from selling health technology and internet services.
Price Action: GOOG shares closed higher by 3.38% at $92.26 on Wednesday.

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