Alphabet’s secretive X division lays off dozens of workers in cost-efficiency push

Google parent Alphabet will reportedly lay off dozens of workers in a secretive division that develops new technology as part of the search giant’s broader cost-cutting push.

In recent months, the division, called X Lab, has been in talks with venture capitalists, sovereign wealth funds and private equity firms on funding, people familiar with the matter told Bloomberg.

Getting outside funding would allow X Lab projects to be spun out more easily, functioning as independent startups with support from Alphabet and other investors, one of the people told Bloomberg, which also viewed a company email on the topic.

The innovation lab has worked on high-tech projects like Wing, which consists of delivery drones; Loom, an internet network of balloons; and Makani, kites that generate wind energy.

“X tackles global challenges like climate change and connectivity and we continually look for ways to streamline how we bring our moonshots to life,” a spokeswoman for the division told Reuters.

The move comes days after Google said it would lay off hundreds of employees in its advertising sales team and its hardware, Voice Assistant and augmented reality teams amid its aggressive campaign to cut costs and improve efficiency.