Google is making significant changes to its Devices & Services teams responsible for managing hardware products such as Pixel, Nest, and Fitbit. This restructuring marks a departure from the previous approach where these divisions operated independently with distinct teams overseeing design, hardware engineering, software development, user interface, and more.
A Miniature Company for Each Hardware Line
Historically, Google’s hardware efforts resembled miniature standalone companies. The Pixel, Nest, and Fitbit divisions operated separately, reflecting Google’s acquisition of these entities over the years. The purchase of Nest in 2014 marked the beginning of Google’s expansion into the smart home sector. Subsequently, the acquisition of Fitbit in January 2021 solidified its position in the wearables market.
Transition to a Functional Organization Model
Google’s new direction involves transitioning from this compartmentalized approach to a functional organization model. Under this model, specific functions, such as hardware engineering, will be handled by unified teams responsible for Pixel, Nest, and Fitbit products. As a result, there will be a single leader overseeing each aspect of product development across all Google hardware.
Potential for Unified Products
While the restructuring is expected to streamline operations and promote collaboration, it remains to be seen whether this will lead to more unified products across different form factors. At this point, it appears that the Pixel phone team will largely remain intact.
Apple, one of Google’s primary competitors in the tech industry, has successfully implemented a similar functional organization model. Apple’s approach involves centralized divisions for Software Engineering, Services, Hardware Technologies, and Hardware Engineering. This structure has contributed to the seamless integration of software and hardware in Apple’s products.
Departure of Fitbit Leadership
As part of this reorganization, notable departures within Google’s leadership have been confirmed. Fitbit co-founders James Park and Eric Friedman, along with other Fitbit leaders, are leaving Google. When Google completed the acquisition of Fitbit in January 2021, James Park assumed the role of vice president and general manager of Fitbit. During his tenure, he played a pivotal role in the development of Google’s Pixel Watch and Pixel Watch 2.
Google’s wearables portfolio includes not only smartwatches and fitness trackers but also the Pixel Buds lineup of headphones.
Downsizing and Shift in AR Strategy
This restructuring effort will result in a reduction of several hundred positions within the Devices & Services division. Notably, a significant portion of these job cuts will affect the first-party augmented reality (AR) hardware team. This downsizing suggests that Google is shifting away from developing its AR hardware and embracing an OEM (Original Equipment Manufacturer) partnership model.
Employees affected by these changes will have the opportunity to apply for open positions within the company, and Google is committed to providing support during this transition.
Commitment to AR Initiatives
Despite the shift in AR hardware strategy, Google remains dedicated to other AR initiatives. The company emphasizes its commitment to existing AR features integrated into products like Google Lens and Google Maps. Additionally, Google highlights ongoing product partnerships, including the Android XR collaboration with Samsung aimed at developing a headset.
Google’s move to streamline its hardware divisions and shift its AR strategy aligns with broader industry trends among Big Tech companies.
Industry-Wide Restructuring
Google is not alone in its recent restructuring efforts. Several major technology companies have initiated a series of layoffs over the past year. Most recently, Amazon announced its plans to cut “several hundred” roles, reflecting the dynamic nature of the tech industry and the need to adapt to evolving market conditions.
In conclusion, Google’s restructuring of its Devices & Services teams signals a strategic shift in how it approaches hardware development and organization. As the company aims to enhance collaboration and efficiency, the industry will be closely watching how this change impacts its future product offerings and its role in the ever-evolving tech landscape.
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