The move is expected to affect dozens of employees, ranging from hardware engineers to program managers.
As for its software teams and Chrome OS in particular, none of those employees seem to have been affected by this move.
Considering these cutbacks aren't necessarily permanent - Google has asked employees to seek temporary roles within other divisions - there's still a possibility that certain people will be transferred back to the Create team after the current situation has been assessed. Since the market is insanely competitive and margins are low, it seems Google decided that perhaps it would be best to concentrate its efforts on its products that are doing well for now.
The restructure does not affect the "Pixel" team, which is focused on developing Google's smartphone efforts. These changes have reportedly been prompted by cancellation of projects within the laptop and tablet division.
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Manufacturing roles on Create were not impacted by the recent downsizing, signaling Google's near term product lineup will likely not change.
However, at least once source said that there was a "bunch of stuff in the works" that may now no longer see the light of day.
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.
Following the Pixel C came the Pixelbook, which was widely regarded as one of the best, most luxurious Chromebooks ever made. The Pixelbook has been well-received by reviewers, however, many have questioned the value of having such high-performance hardware dedicated to running Chrome OS.
Google is the disputed king when it comes to software and associated technologies, but the same can not be said for hardware.