The mass layoffs at Google announced the day before will have a major impact on the start-up incubator Area 120, which the company has previously used as a platform for developing innovative ideas. The agency announced Bloomberg with reference to a company representative.
A Google representative said the incubator will release three new projects this year that will become part of the company. The CEO of Area 120 and the staff involved in these three projects will remain in their positions, while all other incubator staff will lose their jobs. “We made the difficult decision to phase out most of the Area 120 team.”said a Google spokesman.
The day before, Google and Alphabet chief Sundar Pichai released an open letter to his subordinates announcing his intention to cut about 12,000 employees — more than 6% of the company’s total. Similar decisions have previously been made by Amazon, Microsoft and other tech giants.
The startup platform Area 120 within Google was launched in 2016 to help the company’s employees launch interesting projects and turn them into commercial products. For the first time, the large-scale job cuts program at Google has not touched the interests of the incubator – it was already known in September that half of the Area 120 projects were closed, only those related to artificial intelligence technologies, which the search giant considers a priority, managed to survive.