Alphabet's Nest said to face restructuring months after co-founder's departure

Nest thermostat is being adjusted in a home in Provo, Utah.
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Alphabet's pressured internet-of-things company Nest will undergo a reorganization, Fortune reported on Tuesday.

Nest Labs, which makes smart thermostats and smoke detectors, will see its platform developers become part of Google's internet-of-things team, in a unified division headed by Hiroshi Lockheimer, Fortune reported. It comes after Google's May unveiling of Google Home, a voice-activated connected home device, similar to Amazon Echo, expected to launch sometime this year.

Nest, acquired in 2014, and Alphabet have both come under scrutiny over the past year amid uncertainty surrounding businesses outside Google's core.

Nest co-founder Tony Fadell left Nest earlier this summer, the latest in a stream of workers to reportedly leave the company as it failed to make inroads in new products. Meanwhile, Google's so-called "moonshot factory" may also have trouble shipping products, sources told Recode in an article published this week.

Absorbing Nest developers under Google's payroll could improve Nest's financial situation dramatically, Fortune reported.

Alphabet did not immediately respond to a request for comment.

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