Alphabet, the parent company of Google, has announced another round of layoffs, this time affecting its robotics subsidiary, Intrinsic AI.

Last month, Intrinsic acquired the commercial arm of Open Robotics, called OSRC. A post on TeamBlind's professional network suggests that the layoffs were decided right after the acquisition, as the company needed to maintain employee headcount.

 According to reports, Intrinsic AI is eliminating around 20% of its workforce, roughly 40 employees. The move comes after another Alphabet subsidiary, Verily, laid off around 240 employees as part of its One Verily program to simplify its operating model. This represented 15% of Verily’s 1,600-strong workforce.

Layoffs at Intrinsic AI

Intrinsic AI was incubated for close to five years in Alphabet's X research unit before going independent.  It specializes in developing artificial intelligence-based software to bolster the use of robots in industries and commercial environments. 

It is unclear how many people will be affected by the layoffs from the Everyday Robots project. And Alphabet is scheduled to shut it down.

Denise Gamboa, director of marketing and communications, said that some of the technology and part of the team would be consolidated into existing robotics efforts within Google Research.

The Everyday Robots project originated in 2013 after Google purchased the robotics engineering company Boston Dynamics.

 Everyday Robots developed a fleet of robots repeating tasks like sorting trash. And also cleaning Google's dining halls and conference rooms. The project incurred losses of about $6.1 billion for Alphabet in 2022.

The development of general-purpose learning robots was a success. But it didn’t outweigh the costs incurred. And the latest layoffs reflect the need to streamline expenses.

Alphabet is trying to simplify its operations and focus on core businesses. And they are looking to those that have the potential to generate higher revenues.

The layoffs at Alphabet at Intrinsic AI and the Everyday Robots project, is a reflection of the challenges that tech firms face in developing cutting-edge technologies while balancing costs and generating profits.