Essential canceled its PH-2 smartphone back in May and now the company is cutting 30% of its staff, according to Bloomberg. The reductions will affect all divisions, including hardware, marketing, and sales. The business media reported earlier Essential is switching its focus to an AI-based smartphone.
Is Essential falling apart?
Essentials website states there are 120 employees at the Palo Alto company. A spokesperson wrote in an email that they are very sorry for the impact on the colleagues and the sharpened product focus will help deliver a truly game-changing consumer product.
The layoffs should not be an issue for the current Essential PH-1 owners and their monthly updates. The phone was among the first to receive Android Pie, although recent clearance sales suggested it’s days of availability are numbered.