Alphabet moving some Nest employees to a new nest at Google

The Nest Labs engineers moving to Google will work under Hiroshi Lockheimer, a longtime executive at Google who is now the senior VP of Android and has recently taken more responsibility in Google's products for the living room. Either way, the IoT group will focus its efforts on Google Home, a smart speaker similar to Amazon Echo, as well as countering Amazon's other initiatives in the smart home sector. There's no doubt that Google and Nest will play this up as a logical pairing, though at the same time, Alphabet's been looking to cut costs at some of its smaller subsidiaries.

Since Google has hired the same team that developed the Brillo and Weave, chances are that the company's smart home speaker will give Amazon a run for its money.

Google did not previously announce any strategic partnerships with third-party products for developing the AI speaker Google Home, because Nest has already these partnerships in place. Therefore, it would make sense for Google to use the experience of its colleagues at Nest in order to help with Google Home's development. Undergoing a restructuring, Nest's entire platform team will become part of Google, in order to create a unified Internet of things platform and work on Google Home. As of earlier this year, Nest had delivered revenues that were "below the initial expectations Google had set" for it when it bought the company in 2014, according to Recode.

The Nest software developers will be moving over to Google's payroll, and reportedly it is expected to improve Nest's financial situation, provided new nest products are developed. The company's former CEO, Tony Fadell, resigned in June this year, handing over the reins to Marwan Faraz.

  • Anthony Vega