Google is reorganizing the divisions in the Devices and Services section that are responsible for Pixel, Nest, and Fitbit products (via 9to5Google).
In the Devices and Services section, Google has separate divisions for Pixel, Nest, and Fitbit. In each division, there are separate teams for different aspects of a product, such as design, hardware engineering, and software. That means multiple teams in the Devices and Services section are doing the same type of work. Basically, Google has miniature companies for Pixel, Nest, and Fitbit.
Google is streamlining Pixel, Nest, and Fitbit divisions
Now, Google is switching to a functional organization model for the Devices and Services section where it will group people into different divisions based on areas of expertise. So, for example, instead of multiple hardware engineering teams across Pixel, Nest, and Fitbit, there will be only one hardware engineering team in the Devices and Services section that will work on Pixel, Nest, as well as Fitbit devices.
As such, there will be a single leader for an aspect of a product across Pixel, Nest, and Fitbit. For example, there will be only one leader for hardware engineering of Pixel, Nest, and Fitbit devices. Switching to this type of organization model could help Google reduce workforce and therefore, costs. Plus, it could also bring uniformity across various products from the company. This is how Apple operates too.
Google is firing hundreds of employees
As a part of this reorganization, Google is eliminating “a few hundred roles.” It says that those people will have the opportunity to apply for other roles at the company. Most of the people that Google is firing are from the hardware team of the augmented reality (AR) division. It suggests that Google is not focusing on developing its own AR headset. Instead, the company says that it focusing on partnerships. Here, Google could be suggesting its partnership with Samsung for the Korean tech giant’s upcoming XR headset.
Looking at this change, co-founders of Fitbit, James Park, and Eric Friedman, and other leaders at Fitbit are also leaving Google. The reorganization of the Devices and Services section could have a huge impact on the company’s upcoming products, which could either turn out to be good or bad for the brand and consumers.