The Biotech company founded by Google parent Alphabet, Verily, is ceasing its operations in Israel three years after opening an R&D center in the country, UK-based news outlet The Guardian reported Saturday. According to the company the move was made in order to refocus the company’s strategy on core products. Verily is expected to leave Israel by the end of 2024’s third quarter.
As part of our ongoing review of business needs, Verily has made the difficult decision to begin the process to close its R&D center in Israel located in both Haifa and Tel Aviv,” Verily’s spokesperson said. “This decision is in keeping with our strategy as we continue to streamline our overall company operations.”
Verily, founded by Google's parent company, Alphabet in 2015, has become an influential company in the biotech field and raised at least $3.5 billion as of last year. It has in recent years been preparing to separate from Alphabet and plans to go public as an independent company.
The company opened its research and development center in Israel in 2021 and announced collaborations with hospitals and health organizations in the country. When asked if employees at the center would lose their jobs, the spokesperson said the current team in Israel is "expected to be leaving the company by the end of Q3 2024.”
"The Verily Israel team has driven important innovations and advancements in the past several years, specifically focused on applying artificial intelligence (AI) techniques to biomedical problems," the spokesperson said. "We plan for this critical work to continue in our U.S.-based sites.”
Verily has been enacting a cost-cutting plan for over a year, which has included rounds of layoffs following missed revenue forecasts in 2023. Alphabet has made broader cuts, laying off 12,000 employees in 2023 and another 1,000 in January 2024.
First published: 17:56, 06.29.24