Google is about to make its famous moonshot projects a little more grounded.
Alphabet, the newly created parent company for Google, is planning to make its most ambitious -- and some would say unrealistic -- divisions more fiscally responsible by requiring them to pay for "backoffice" corporate necessities like recruiting, finance and marketing rather than simply mooching those services off the mothership. The move was first reported by reportThe Wall Street Journal.
Google, er, Alphabet (we're still getting used to this too) have a range of standalone moonshot companies, including Google X, a secretive lab that previously developed projects like self-driving cars and Google Glass, and Google Life Sciences, for ambitious healthcare research.
Reps for Google did not immediately respond to our request for comment.
The arrangement continues the steady drumbeat in recent months of Google trying to show Wall Street it can reign in some portion of its wild costs for areas outside its core online advertising business, and offer a more sustainable roadmap for future innovation.
Earlier this year, Google hired Ruth Porat, the former CFO of Morgan Stanley, as its CFO to help improve its relationship with Wall Street investors. Porat has preached the need for "ongoing expense discipline," which might sound boring to Google users, but is practically music to investors' ears.
During her tenure, Google has beat Wall Street estimates for profits twice in a row after having been on a six-quarter losing streak before. Google also moved forward with its long awaited plan to create a holding company, Alphabet, which is expected to finally provide more transparency for the financials of Google's various investments.