Google slashes most jobs at Area 120 incubator as part of cuts

Google is trimming its workforce by 6 per cent amid a tech industry slowdown. PHOTO: EPA-EFE

MOUNTAIN VIEW, California – Alphabet’s Google has cut most of the jobs at Area 120, its in-house incubator for new projects, as part of a broad wave of layoffs across the company.

Three projects in the incubator will “graduate” later in 2023, meaning they will be folded into Google, a company spokesperson said on Friday.

“We have made the difficult decision to wind down the majority of the Area 120 team,” the spokesperson said.

The managing partner of Area 120 remains with the company. Virtually all other workers who were not involved in the three projects have lost their jobs, according to two people with knowledge of the matter.

The cutbacks are part of a sweeping reduction at Mountain View, California-based Alphabet, which is eliminating about 12,000 jobs – more than 6 per cent of its workforce. The company follows Amazon.com, Microsoft and other tech giants in making major layoffs.

Launched in 2016, Area 120 offers select employees the opportunity to work on small startups that live inside Google.

“Many of Google’s best ideas begin as passion projects,” the Area 120 website explains.

Among the incubator’s biggest hits was GameSnacks, a gaming platform launched in 2020 that caters to people using low-memory devices on slow cellular networks.

Google made another round of cuts to Area 120 in September, when some teams at the incubator were notified that their projects had been reorganised or cancelled.

A company spokesperson said at the time that Area 120 would be “shifting its focus to projects that build on Google’s deep investment in AI and have the potential to solve important user problems”. BLOOMBERG

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