The move is expected to affect dozens of employees, ranging from hardware engineers to program managers.
By the looks of things, Google could also ditch plans for certain projects, according to the aforementioned source citing people familiar with the matter, as the company requested employees in the hardware group to temporarily seek new roles in other divisions or Alphabet companies. This team reportedly had a "bunch of stuff in the works", meaning it's likely that several hardware projects in development have been shelved as a result. The hardware market for laptops is fiercely competitive, and all of Google's (overpriced) efforts in this space have failed to capture the market.
Manufacturing roles within Create were not reportedly not impacted by the recent downsizing, which indicates that Google's near term product lineup may be unaffected.More news: US Says It Stands With India in Fighting Terrorism
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In the meantime, Google will probably continue focusing on its smartphone and Home hardware businesses.
Today, the Create division is responsible for the Pixelbook laptop and Pixel Slate tablet amongst the company's wider swath of "Made by Google" products. The Pixelbook, like the Chromebook Pixel before it, is just a high-end Chrome OS laptop. But with the Pixel C limited to running stock Android instead of Chrome OS like you get on more modern Google-based convertibles, and equipped with a buggy and often uncomfortable keyboard, the Pixel C was ill-prepared at the time to go up against competing products like the Surface 3. While there is no indication that Google plans to abandon the Pixelbook, the staff reductions suggest that Google is unlikely to flesh out its in-house line of Chromebooks with a wider variety of products and prices.
With the Pixel C, Google attempted to re-imagine what a portable 2-in-1 could be by designing a detachable tablet that connected to its keyboard dock via a tilting, magnetic flap that functioned sort of like a reverse kickstand. The longtime tech reviewer Walt Mossberg said that the Pixel C represents "an object lesson in what Google shouldn't do if it pursues home-grown integration of hardware and software".