Google Cancels 50% of Projects at Internal R&D Group

TechCrunch has learnt that Google is planning to slash projects at its in-house R&D division known as Area 120. Google confirmed this information.

The company informed staff of a “reduction in force” that will see the incubator halved in size, as half the teams working on new product innovations heard their projects were being canceled. Last week Google CEO Sundar Pichai suggested the tech giant had to become 20% more efficient, meaning headcount reductions.

Previously, there were 14 projects housed in Area 120, now there are just seven. Employees whose projects will be termintaed will have to find a new job within Google by the end of January 2023.

As Google is cutting the costs, the R&D division is planning to focus on just one main area of research. According to Area 120 lead Elias Roman, the division aims to work on AI-first projects, as opposed to its earlier mandate to fuel product incubation across all of Google.

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. 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,

Google spokesperson said.