Essential Inc. has laid off 1/3 of their workforce in the midst of new product development

According to Bloomsberg, Essential has reportedly laid off approximately 1/3 of its work staff, and it appears production has halted on any future projects.

Founded by Android co-creator Andy Rubin, Essential burst on the scene last year with the pure Android PH-1 that offered just the "essentials" of what makes a good flagship phone. The PH-1 shipped with the standard internals of a 2017 flagship (albeit a terrible camera) for a price that severely rivaled what Samsung, Apple, and Google offered; it is even considered the first phone to ship with the trademark notch that seems to be included on every phone not branded with "Samsung".

While sales never lived up to what they were expecting, Essential plugged on with excellent camera software upgrades and first-to-the-market Android updates. However, a lack of capital coupled with software bugs seemed to foreshadow the future of Essential Inc. Initially reported to me working on a second iteration, Essential announced earlier this year that production had halted on the PH-2 as they shifted focus to a smart home device to rival Google and Amazon in the home.

Rumored to be available for sale earlier this year, it now looks like Essential is now on the verge of either greatness or total failure. Bloomberg reported last week that Rubin and Co. were now working on a smaller phone that uses A.I. to operate with most actions initiated via voice command. Rubin has stated that the PH-1 failed as it did not standout in a crowded marketplace so his hope appears to be linked to this new device finding a niche in the market.

It is unclear if these layoffs mean that the new device development is struggling or if these employees were considered non-essential to the development of this A.I. phone. Either way, it does not currently look bright for the company with the O.G. notch.