LogInGoogle closes half of the projects housed in its Area 120 R&D division. The staff who worked on the canceled projects will have to find a new job within Google by the end of January 2023, or they’ll be terminated.
Google has decided to close half of the projects in its Area 120 R&D division in an effort to streamline operations and improve efficiency, TechCrunch reports citing its own sources as well as providing confirmation by the company's spokesperson.
During the recent Code Conference that took place last week, Google CEO Sundar Pichai stated that he wants the company to become 20% more efficient which led to speculation that this plan might include headcount cuts. This prediction is apparently coming true as on Tuesday, the company reportedly informed the employees of its R&D division known as Area 120 about a "reduction in force."
The company stated that the projects housed in Area 120 will be cut down by half – only 7 out of 14 will continue operations. The employees who worked on the canceled projects are now offered to find a new job within Google by the end of January 2023 – otherwise, they will be terminated. There is no guarantee that all of the staff involved in these projects will continue to work at the company.
According to Area 120 lead Elias Roma, now the division will specialize in projects related to artificial intelligence, although previously the R&D division was not limited to this sphere.
Over the years of its existence, Area 120 has released a number of interesting and successful products including the HTML5 gaming platform GameSnacks, which has become part of Google Chrome, an analog of the AirTable service called Tables, which is part of Google Cloud, AI-powered conversational ads platform AdLingo, also integrated into the cloud, video platforms Tangi and Shoploop, included in Google Search and Google Shopping, respectively, travel planner Touring Bird, which became part of the direction of Commerce, and the platform for interviews for technical specialties Byteboard – it has become an independent unit.
"We’ve recently shared that Area 120 will be shifting its focus to projects that build on Google's deep investment in AI and have the potential to solve important user problems," a Google spokesperson said in a statement to TechCrunch. "As a result, Area 120 is winding down several projects to make way for new work. Impacted team members will receive dedicated support as they explore new projects and opportunities at Google."
Among the projects that are being cut is a service called Qaya, set to allow creators to easily set up new web storefronts where they can sell their products and services directly to their audiences. The service is similar to such "link in bio" services as Linktree and Beacons. The distinctive feature of Qaya is that it offers integration into Google Search and Google Shopping as well as the ability to connect to YouTube to promote goods and services.
The remaining six closed projects include a financial accounting system based on Google Sheets, a shopping-related product, an analytics system for augmented and virtual reality, and three climate-related projects that included a navigation service containing data on charging stations for electric vehicles, as well as systems for calculating carbon emissions in relation to IT and in forest areas.
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