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166136091 story TechCrunch has learned and Google confirmed the company is slashing projects at its in-house R&D division known as Area 120. From the report:
The company on Tuesday informed staff of a "reduction in force" which will see the incubator halved in size, as half the teams working on new product innovations heard their projects were being canceled. Previously, there were 14 projects housed in Area 120, and this has been cut down to just seven. Employees whose projects will not continue were told they'll need to find a new job within Google by the end of January 2023, or they'll be terminated. It's not clear that everyone will be able to do so. According to Area 120 lead Elias Roman, the division aims to sharpen its focus to only AI-first projects, as opposed to its earlier mandate to fuel product incubation across all of Google. Over the years, the division has launched a number of successful products, including the HTML5 gaming platform GameSnacks, now integrated with Google Chrome; an AirTable rival called Tables which exited to Google Cloud; an A.I.-powered conversational ads platform AdLingo, which also exited to Cloud; video platforms Tangi and Shoploop, which exited to Google Search and Shopping, respectively; the web-based travel app Touring Bird, which exited to Commerce; and a technical interview platform Byteboard, a rare external spinout. One of the projects now being cut with the changes is Qaya, a service offering web storefronts for digital creators, launched late last year.
The other six projects being canceled weren't yet launched, but included a financial accounting project for Google Sheets, another shopping-related product, analytics for AR/VR, and, unfortunately, three climate-related projects. These latter projects had focused on EV car charging maps with routing, carbon accounting for I.T., and carbon measurement of forests.
Google confirmed the changes in a statement to TechCrunch: "Area 120 is an in-house incubator for experimental new products. The group regularly starts and stops projects with an eye toward pursuing the most promising opportunities. 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."
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