Vital Products, the entity founded by Andy Rubin – considered the father of Android – has reportedly cut about 30 percent of its employees.
The business attracted that the Vital Phone as its first product back in May last year — a bit over one and a half year after being launched in November 2015. Rubin was quite challenging regarding the smart phone that was amongst the first few Android smartphones using a screen notch and ultra-thin bezels. However, the firm reportedly was not able to market over a few thousand units. It even reduced the price of the phone from the original $699 (approximately Rs. 51,400) to $499 (approximately Rs. 36,700) to entice clients. In April this year, the Android co-founder also announced the development of a new smartphone from Essential products which could now be built via the compact team.
Citing people knowledgeable about the growth, Bloomberg reports the 30 percent Improvements from the Critical Products workforce has affected staff in the company’s hardware, marketing, and sales division. It’s uncertain whether the cut has largely affected the middle- and operational-level management or it also resulted in some reduction in the top-level management. The about page on the official Crucial Products website shows that the business has about 120 employees.
A vital spokeswoman has confirmed the Advances in an emailed statement, without confirming the reported percentage. “We are very sorry for the impact on our colleagues that are leaving the organization and do everything we can to help them with their future livelihood. We’re confident our sharpened product focus will help us produce a truly game-changing consumer product,” the spokeswoman said, as quoted by Bloomberg.
The new development comes months after Essential Products came in the news for cancelling its new smartphone and considering selling itself. The Palo Alto, California-headquartered company had reportedly hired Credit Suisse Group AG to help it at the sale procedure and received attention from a minumum of one suitor. Rubin also lately reported to have stopped his plans to unveil a smart device for houses to choose on Amazon Echo and Google Home lineups. But Mark Gurman of Bloomberg earlier this month reported that the executive is currently in development to deliver an artificial intelligence (AI) backed smartphone in the home of Crucial Products.
“We always have multiple products in development at precisely the same time and we adopt cancelling some in favour of the ones we think will be bigger hits. We’re putting all our efforts towards our potential, game-changing goods, which include mobile and home products,” Rubin tweeted back in May while showing future plans.
Additionally, it reportedly spent over $100 million (roughly Rs. 735 crores) on building its initial products, for instance, important Phone in addition to its modules.