Nest CEO steps down after employees pushed for his exit
The smart home device maker hasn’t had an easy time under Google, including discontent over leadership and a potential sale to Amazon in 2016.
Nest CEO Marwan Fawaz is stepping down, but will remain at Google and Alphabet as an adviser.
Five months after Nest rejoined Google, the search giant told employees Tuesday that Marwan Fawaz will no longer be CEO of Nest, and the smart home device maker will be combined with Google's home and living room products team.
The move may make it easier for Google's smart home devices to work with each other and tap into artificial intelligence and machine learning advances, Fawaz and Rishi Chandra, vice president of product management for Google's home and living room products, said in a joint interview on Monday.
Nest, which had up until now been housed more broadly under Google's hardware division, will be merged with Google's home devices unit. The combined team now reports to Chandra, a 12-year Google veteran.
"This is the natural evolution," Chandra said. "We thought, let's connect these things and build experiences that we really couldn't do before."
For consumers, those connected "experiences" could involve Nest's web-connected thermostat, smoke alarm and home security system, as well as Google Home smart speakers and Chromecast streaming devices.
Fawaz will remain with Google and parent company Alphabet as an executive adviser. He said there would be no layoffs, and that Google is looking to expand the team. Google will also keep the Nest brand, Fawaz said.
It's the latest switch-up at Nest, which was started by former Apple hardware guru Tony Fadell and bought by Google for $3.2 billion in 2014. Alphabet folded Nest back into Google in February after letting it operate for three years as a semi-independent subsidiary of Alphabet. Those subsidiaries, which show up on Alphabet's balance sheet as "other bets," also include self-driving car company Waymo and the investment arm GV.
Fawaz's exit from Nest comes after employees began pushing for a leadership change amid complaints that he's more of an operations manager than a leader, according to multiple sources including former Nest employees. They asked not to be identified because they weren't authorized to comment on behalf of Alphabet and Google.
Google hardware chief Rick Osterloh said the change was "right for our users and the business."
"Marwan led the integration planning efforts and was responsible for determining our organizational strategy, in consultation with me, Rishi and our employees," he said in a statement. "We decided together to make these changes so we can better serve our users."
After publication of this story, Osterloh issued another statement defending Fawaz as a "strong CEO."
"Nest's employee retention and satisfaction has significantly improved over his time with the team," Osterloh said. "Unsourced comments suggesting otherwise are wrong. I am pleased to report that he will stay with us as an executive advisor for our hardware business, for Alphabet companies, and future strategic investments."
Even before Google announced the leadership change Tuesday, Nest employees said they had the sense the reins would be handed over to Chandra if Fawaz stepped aside. They applauded the change.
One longtime Nest employee said, "I'm happy to leave Nest in Rishi's hands."
'The new normal'
Fawaz, a former Motorola executive who joined Google in 2016, took over as CEO immediately after Fadell stepped down. Former employees said there was a disconnect from the start with Fawaz, who was handpicked by Alphabet's board.
They described him as the exact opposite -- likely by design -- from his predecessor.
Employees viewed Fadell -- who's known as the godfather of the iPod and played a key role in designing the iPhone -- as a product visionary and leader. Fawaz, by contrast, was considered a business development manager, focused on efficiencies.
Google Hardware Chief Rick Osterloh (left) and Fawaz, when Google and Nest rejoined in February.
And since Fawaz was in close communication with the higher-ups at the parent company, some employees distrusted him. "He was planted in the role by Google to keep us under his thumb," one former employee said.
Another said he believes Fawaz was so "operationally focused" that the team delivered "on-time mediocre products" while he was in charge, instead of devices that took "big leaps forward."
Others resented Fawaz because they felt he viewed his role as a part-time gig: He lives in Denver despite running Nest, based in Palo Alto, California, for more than two years.
Fawaz on Monday acknowledged some employee discontent. "It's the same feeling probably that they had when I joined a little over two years ago," he said. "With new leadership, the organization always has questions. There is an anxious feeling out there."
When Nest reunited with Google in February, Fawaz began reporting to Osterloh. But several people in senior roles asked Osterloh why Fawaz was still at Nest, according to one former employee. The rancor put Osterloh, a friend of Fawaz since the two worked together at Motorola, in an awkward position.
"What's the purpose of him being here?" another former employee said of Fawaz. "Nest doesn't need to have a general manager anymore."
Fawaz plays down the exchanges employees had with Osterloh. "We have a very transparent structure and organization across Google. That is normal. It's not unusual for people to give their opinions. Rick has been very visible to the Nest team," Fawaz said. "There have been a lot of folks that have encouraged us to move faster. And we listened."
One of the former employees believes Fawaz needs to leave Nest so it can adjust to its new reality as part of Google. "It's important to get to the new normal," that employee said.
There's plenty at stake for Nest, which is why the executive team matters so much. Google is scrambling to catch up to Amazon in the high-profile battle for the smart home market. The gateway drug for most consumers is the smart speaker, which the e-commerce behemoth dominates. Amazon's Echo devices own 44 percent of the smart speaker market globally. Google Home holds 27 percent, according to a report by Strategy Analytics.
The next major battle will be in providing a range of smart devices that work seamlessly throughout the home, from speakers to thermostats to alarms to security systems. Nest was the first smart home company to make a splash when its Nest Learning Thermostat became a surprise hit in 2011. But that was then.
"They're still groping for a vision," said Frank Gillett, a Forrester analyst who covers the smart home industry. "Nest is doing it better than anyone else in the market today. But they aren't living up to their full potential."
Amazon discussions
In June 2016, Nest held an all-hands meeting at its Palo Alto headquarters, in a meeting space employees affectionately call "The Living Room." Some of Alphabet's senior brass, including CEO Larry Page and legal chief David Drummond, were on hand as Fadell told employees he was stepping down as CEO. Also in the room was his replacement, Fawaz.
The Google execs thanked Fadell for his service. He got a standing ovation, and with that, Fadell was out, according to former employees who attended the meeting.
The meeting capped a tumultuous period for Nest. For months, the company's culture had been under intense scrutiny. Reports claimed that 70 Nest employees -- unhappy with Nest's culture and leadership -- had left the company in the previous 12 months. A bitter feud became a public drama when Dropcam CEO Greg Duffy wrote that selling the security camera company to Nest was a "mistake." (Dropcam eventually became Nest Cam.)
But Nest's relationship with Google had actually started to sour long before Fadell's farewell speech, former employees say. It began when Google reorganized itself into Alphabet in 2015. That's because when Google acquired Nest, a key principle of the deal was that Nest would be allowed to grow and innovate as part of Google, with access to the company's vast resources.
But as a separate company under Alphabet, Nest lost that protective buffer and was asked to show more progress, faster. Nest's leadership felt Google had changed the rules of the deal.
So in 2016, Alphabet explored selling Nest, according to three people familiar with the situation. The company had talks with Amazon as a potential buyer, the people said. One of them characterized those talks as "serious discussions." That person also said Alphabet worked with investment bank Lazard to shop Nest around in a sales effort known internally as Project Amalfi.
The hitch: Fadell made it clear to Alphabet he wouldn't be part of any sale, according to an interview he gave earlier this month on French talk show On Refait le Mac. Ultimately, no deal was made.
The talks with Amazon, as well as the involvement of Lazard, haven't been previously reported.
Google, Nest, Amazon and Lazard declined to comment. Fadell couldn't be reached for comment.
The relationship between Google and Amazon has since become more combative, as evidenced by their public dealings with each other.
Nest co-founder Tony Fadell stepped down as CEO in 2016.
Amazon, the world's largest online store, is selective about which Google products it sells. It doesn't sell Google Home, a $130 smart speaker powered by Google's AI "Assistant." When you search for the device on Amazon's site, you'll see results for other products, including the e-commerce giant's rival Echo speaker, powered by its AI, Alexa. Amazon does sell some Nest products, like the $250 smart thermostat and $120 smoke detector, but not others, such as the Nest E, a $170 version of its thermostat, or the Nest Secure alarm system.
And after banning sales of Google's Chromecast streamers two years ago, Amazon in December agreed to bring them back -- though they haven't yet made an appearance on the online store.
Amazon, meanwhile, has fortified its smart home war chest by acquiring the smart doorbell company Ring in February, following its purchase of another doorbell and security system company, Blink, in December. (Nest has its own doorbell and security products, the Hello and Secure.)
Google, for its part, cut off YouTube from working on Amazon's Echo Show video device and Fire TV. Google has tapped partners, including Sony, to introduce four new video devices with the Assistant built-in to compete with the Echo Show.
Competition with Amazon isn't Nest's only concern. In addition to external threats, it faces internal problems as well.
One of the biggest challenges is that Nest has had trouble keeping employees, especially engineers, one former employee said. Many didn't leave for other tech giants. They opted for other jobs within Google. The reason? It's an easy switch -- people don't have to find an entirely new job, and there is often no change in compensation. Perhaps most important, compared to Nest and its confusing hierarchy, there's no ambiguity in what your role is or who you report to if you're, say, an engineer at the Google Play app store.
Fawaz challenged that claim, saying Nest's retention rate now is better than when it was an Alphabet subsidiary.
Going forward, Chandra said one of Nest's goals is making sure the teams and products feel integrated and not siloed.
"We saw so much opportunity right in front of us that we felt, why don't we do this faster?" he said. "It's incredibly challenging what we're trying to do."
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How to Use ChatGPT to Summarize a Book, So You Don't Have to Read It
Got a huge TBR pile? Here's how AI could summarize the key points from a business productivity book. Whether you should do it is another question entirely.
I have a goal to read one book a month. On my weekends, I cozy up on the couch with my coffee, and my phone in another room. The point of this ritual is to create space in my schedule that's unbound by time and to-dos -- but as my reading list grows, I find myself trying to get through more pages and more books.
I wanted to see if I could use artificial intelligence to summarize the main concepts, lessons and wisdom of a book I knew I wouldn't get to for months, or even years. Keep the beautiful prose for the physical page, but use AI to summarize non-fiction business books, for example.
I picked Deep Work by Cal Newport to test run on ChatGPT. After using various AI tools, I thought ChatGPT, one of the best-known text prompt chat tools, would do the job best. I also have the $20 a month paid membership, so I wanted to make the most of it.
Ponder on the parameters
If I've learned anything about AI, it's that the preprompt thinking is just as important as the first prompt. I didn't just want a huge summary of the book. I wanted to learn Newport's big ideas, arguments, strategies and frameworks regarding deep work, so I could apply it in my work.
So, I started the chat with some expectation-setting.
- First, ask ChatGPT if it has access to the whole book.
- Tell ChatGPT that I want deep insights, not a superficial summary.
- Ask for suggestions on how to apply the key strategies to my freelance business.
- See if it can pull from reviews and reader commentary for more surprising and actionable takeaways.
Prompt 1: "Do you have access to Cal Newport's book, Deep Work?"
I learned that ChatGPT doesn't have access to full manuscripts -- due to avoiding plagiarism and respecting intellectual property rights -- and would just summarize from the existing information about it online.
Not ideal, but I had an idea. I found a 6-hour audiobook YouTube clip, so I asked if it could use that to summarize the book for me.
But no such luck. It told me to watch the video.
Watch a video for 6 hours? No thanks.
There are over 32,000 reviews of the book on Amazon, so I thought maybe there's enough commentary on the book to come up with an in-depth summary. So I started over from this angle.
Next prompt: "I haven't read Cal Newport's book, Deep Work. Highlight the key ideas, concepts, strategies and frameworks, so I can apply to my business as if I've read it. I don't just want a summary of the book."
ChatGPT had a hard time interpreting "comprehensive," spitting out a ton of suggestions. It also started to give advice without asking me about my line of work, like "educate your team on the importance of deep work and provide training on time management and focus techniques" and "allocate dedicated blocks of time for deep work on your calendar." It also gave generic suggestions like "focus on tasks that provide the most value and minimize time spent on low-value activities."
All pretty vanilla advice, if you ask me. Time to apply the pressure, one question at a time.
I still wasn't getting any breakthrough insights, so I kept pushing.
OK, ChatGPT, off to the Swiss countryside I go.
I wish.
I asked for an example of deep work in 2024, and we started to get somewhere. I liked one suggestion, about batching shallow work.
While I do this instinctively, it was a helpful reminder to batch tasks and watch context switching.
Getting Google involved to keep ChatGPT on track
At this point, I was using ChatGPT to ask random questions, like if there's a limit on deep work hours.
It said 4 hours max of deep work per day.
I remember a concept I like called the manager-maker schedule, which details the two main schedule types. As a writer, I'm on the maker schedule, meaning blocks of uninterrupted time are critical.
I had to do a quick Google search of the key lessons in the book so that I knew what insights to prod ChatGPT for. Apparently "productive meditation" was an important takeaway, so I asked for more details about that.
Finally, a new concept. Deep work isn't just head down at desk time.
This strategy was the unlock -- looking on Google for nuggets in summaries, then going back to ChatGPT to expand. When directed, it was great.
I scanned a second summary and found another concept that sounded interesting: keeping a compelling scoreboard. ChatGPT helped unpack the concept.
The TL;DR?
If you want to use ChatGPT to learn about a book, you'll have to spend at least 30 minutes browsing reader summaries yourself and use the most interesting ideas to frame your prompts. This inevitably takes a chunk of your potential deep work time. You can't just ask the AI tool to do it for you.
Once you get on the right track that way, you might discover one concept that changes your productivity or perspective -- but ChatGPT still isn't as good as just reading the book yourself.
You also have to consider that since ChatGPT doesn't have access to the actual book, and only summaries and reviews that are available online, you may not even be getting accurate key points.
And whether using an AI summary defeats the purpose of a book about deep work is still up for debate.
Solar Cheat Sheet: Your Guide to Getting Solar Panels
Thinking of installing a solar panel at your home? We have the answers to all your solar panel questions, even those you didn't know you had.
- Master's degree in environmental journalism
- 2013 Media Award Winner Issued by Press Club Long Island
Solar panels can generate cheap and clean energy. Here is everything you need to know.
In the recent times, residential solar panels have become increasingly appealing for meeting your home's energy needs. The rising costs of energy across the US, along with falling prices for solar panels, thanks to the federal tax incentives, have simply made the economics of solar power not only attainable but beneficial for homeowners in the long run.
"If you looked at solar just a few years ago, costs have continued to come down since then," said Ben Delman, communications director at Solar United Neighbors. "It depends on your situation, but more and more homeowners and families are deciding that solar makes sense for them as a way to save money by taking control over where their electricity comes from."
Below, we've collected CNET's expert advice to get you through the process of purchasing solar panels.
Solar panels work in many different climates and are not just used in the sunniest.
How do solar panels work?
Buying a solar panel system means buying a lot of equipment the average person doesn't have reason to know about. In the most basic terms, photons from the sun are absorbed by the solar panels and converted into direct current, or DC, electricity. For this energy to be used in American homes, it has to go through an inverter attached to the solar array to become alternating current, or AC, electricity.
Read up on what you'll actually be buying with the stories linked below:
- The Most Efficient Solar Panels
- How Sand Becomes Solar Panels
- Here's How Solar Panels Turn Light Into Power
- How Much Energy Does a Solar Panel Produce?
- What's a Virtual Power Plant? Should You Join One?
- Solar Energy Basics: The Magic of Photovoltaic Panels
- Solar Panel Efficiency: What Is It and Why Is It Important?
- Solar Cell, Module, Panel and Array: What's the Difference?
- The Solar Panel Angle That'll Generate the Most Energy Possible
- What You Need to Know About Solar Inverters: Essential Solar Equipment
- Bifacial Solar Panels Generate More Electricity, but Not When You Put Them Here
Is there a solar panel option that works for me?
Fortunately for the solar-curious, many options exist for homeowners and even renters to get some or most of their electricity needs met with energy from the sun.
The most common way to go solar for homeowners is the installation of panels on their roofs. These systems can be purchased directly through an installer (or assembled for the DIYers) as a large cash purchase or through relatively affordable financing (such as a 1.99% APR 15-year loan). There are also options for rooftop solar for those who may not have the capital to get a project started. These are solar leases, where a homeowner pays a fixed monthly cost to a company who retains ownership of a solar system; or a power purchase agreement, in which a homeowner pays for the electricity generated by solar panels rather than the system itself.
Finally, both homeowners and renters in many places have access to community solar. This option allows people to opt in to a nearby solar farm to enjoy some energy savings.
- Yes, You Can Use Solar Power as a Renter
- Solar Power Purchase Agreements, Explained
- Solar Energy Just Became More Accessible for Renters
- Here's How to Know if Your Home Works for Solar Panels
- Should You Buy Ground-Mounted Solar Panels? What to Know
- Tesla Solar Roof: The Sleekest Solar Option Isn't Your Best One
- Power Your EV or Home With Clean Energy From a Solar Carport
- Community Solar: Get Solar Power for Your Home Without Rooftop Panels
- New Solar Shingles Get Rid of the Ugly, Complex Hassle That Can Be Part of Rooftop Solar
Regular cleaning can improve solar panel production, especially in dry, dusty climates.
How much do solar panels cost?
The costs of solar panels will depend on a few factors, including where you live, how much of your energy needs you want the system to cover, whether you install it yourself and whether you want a battery (which could cost as much as the system itself). The average cost was about $3 per watt in 2022 for an 8 kW system through an installer, according to the consulting firm Wood Mackenzie.
The way you pay for your system is vital. You'll notice the biggest hit to your bank balance by paying for solar outright, while financing will spread the expense out over years but with added interest. A lease or PPA is most friendly to the budget-minded, but you won't enjoy the long-term benefits that come with owning a system outright.
- How Much Do Solar Panels Cost?
- 4 Cheaper Solar Energy Options to Use at Home
- Free Solar Panels: Here's What the Fine Print Means
Here's How Solar Panels Can Earn You a Big Tax Credit - Tax Credits and Incentives Help Businesses Go Solar Too
- How to Finance Your Solar Panels: Cash, Loan, Lease and More
- Yes, You Can Get Tax Exemptions From Rooftop Solar — Here's How
How much do solar panels cost in my state?
Here's the average total cash price, cost per watt and system size for a solar panel system in your state, according to data from FindEnergy.com. These prices don't factor in tax credits or state incentives. Certain states don't have any FindEnergy solar data and are grayed out on the map.
How much money will solar panels save me?
If you're buying a system outright or financing it, you'll receive a 30% tax credit through the Inflation Reduction Act.
To get a better idea of when to expect a return on investment, look at how much energy you've consumed in the past year or two and how much it cost you. Then, working with an installer, figure out how much of your energy you'd like to offset with solar and how much the system will cost. Eventually, the savings from not having to buy electricity from your utility will be greater than the cost of the solar system itself.
"In terms of payback, broadly seven to 12 years is a decent average when you see returns from investment in solar after purchasing a system," Delman said.
- Do Solar Panels Save Money? Yes. Here's How
- How Net Metering Makes Home Solar Panels a Better Deal
- These 7 States Have the Best Tax Incentives for Solar Panels
- Solar Panels Eventually Pay for Themselves. This Formula Will Tell You When
- How to Approach Home Batteries if the New 30% Tax Credit Has Your Attention
- The Inflation Reduction Act Will Help You Pay for Solar Panels and Other Energy Upgrades
Ground-mounted solar panels might be a better option for some homes.
Can I install solar panels myself?
It is possible to install most of a solar panel system yourself — mounting the panels on your roof and connecting them to each other. But if your home is connected to a grid, you'll need to hire a licensed electrician for the final connection needed to feed electricity to your utility.
"Another thing to keep in mind if you're doing it yourself is whether the warranties for the panels that you purchase require them to be installed by a professional," Delman said. "Often when people do it themselves, they'll hire an electrician to do the finishing work so it can get certified. It's also good if you're not an expert to have somebody with expertise to just go over the wiring and make sure that everything is where it should be."
Where should I shop for solar panels?
If you want to buy panels directly, most hardware stores and larger retailers have them available. If you'd like to get them through a professional, a good place to start, according to Delman, is the website of your local solar industry association (for example, the New York Solar Energy Industries Association). These organizations should have a list of its members, which will often include installers and suppliers. Typically, installers work with one or two solar panel brands.
"Look for an installer who's experienced, particularly with the kind of situation you have at your home," Delman said. "Have they worked with the same roofing materials? Do you want a ground mount system installed? Check reviews on Yelp, Angie's List, Google and others, and get references too." (Solar United Neighbors also offers resources for going solar, free of charge.)
The best way to make sure you're getting the best deal on your solar panels is to get multiple quotes and ask as many questions of your potential installers as you need. CNET has reviewed many of the national solar companies, but it's a good idea to check into local installers, too, who sometimes can offer lower prices.
- Best Solar Companies
- 7 Tips for Finding the Best Solar Installers Near You
- Solar Panel Buying Guide: Everything You Need to Know
- US-Made Solar Panels Get an Extra Tax Credit — If You Can Find Them
How do I maintain solar panels?
Solar panel maintenance is generally minimal and fairly easy. Even so, we've got the info you need to keep your panels in the best possible shape.
- Solar Panels Get Less Efficient Over Time. Don't Worry About It
- Solar Panels Are Super Durable. How to Make Them Last Even Longer
- Yes, Solar Panels Deteriorate Over Time. Here's What You Need to Know
- How to Boost Your Solar Panel Performance Through Snow and Ice This Winter
Does solar work where I live?
Solar panels, in general, will work in a variety of climates, even those with frigid winters. The more important questions to ask are: Does my roof get adequate sunlight? Are any trees shading my roof? And most importantly, does my utility offer net metering?
Net metering is perhaps the most important aspect of going solar, in that it stipulates that your energy utility will pay you for the energy created by your solar panels that you don't consume. Net metering ensures that the return on investment in going solar is financially sound.
More on solar in your state
Do I need a backup battery?
For most homeowners, buying a backup battery is an expensive proposition, costing almost as much as a solar system itself. Solar batteries can cost anywhere from $12,000 to $22,000, according to the US Department of Energy. If your home is connected to the grid, the high price of batteries puts it squarely in the non-necessity column.
That being said, there are instances where a battery may be worth the expense. If your area is prone to frequent blackouts and/or you have medical needs that, for example, require cold insulin or medical equipment, a battery is a good investment. Batteries will also be a necessity if you live off the grid.
- Best Solar Batteries
- What It Takes to Go Off the Grid With Solar Panels
- Solar Battery Buying Guide: Everything You Need to Know
- Why You Need Home Batteries — And It's Not All About Blackouts
You'll need a battery to go off the grid with solar panels. A bigger one than these.
Does solar increase the value of my home?
Going solar has another benefit for homeowners: It can boost the price of their properties if and when they decide to sell. According to studies by the Lawrence Berkeley National Lab and Zillow, homes with solar panels often sell for about $10,000 more compared to those that don't.
- Solar Panels Are a Big Draw for Gen Z House Hunters
- How Solar Panels Can Add Thousands to Your Home's Value
Are solar panels a scam?
No. Solar panels are a proven technology that can help you shift some of your energy use to cheaper, greener electricity. But that doesn't mean that scammy companies (while apparently rare) don't exist. The company discussed in the story linked below recently went out of business, but a bit of caution is a good thing.
What is net metering?
Net metering — the process by which you're paid for electricity generated by your solar panels but sent back to the grid — is a critical factor in whether homeowners should go solar.
"Let's say during a beautiful sunny day, you're at work, the lights, TV and dishwasher are off, so you're probably generating more electricity from your system than you're consuming," Delman said. "When that happens, that electricity goes to the electric grid through your electric meter to be used by your neighbors. Net metering is what ensures you receive credit for that electricity so that your investment is still being paid back even if you're not using the electricity yourself."
You can see what your state's policy toward net metering is here.
- Are You Still Connected to the Grid if You Get Solar Panels?
- Net Metering Changes in California: How Will They Impact You?
- Net Metering: How You Can Get Paid for Solar Power You Generate
Should I go solar?
Solar won't be an option for everyone. If your home does not receive adequate sunlight due to shading on your roof, you live in a state without net metering or there's no community solar, going solar may not be viable for you.
But with rising energy costs and the falling price of solar panels, for many people there's never been a better time to go solar. There's options to go solar that should fit most people's needs, whether that's through financing, a solar lease, PPA or community solar, that will allow them to start seeing savings on their energy bills almost immediately. By most estimates, a solar system starts paying for itself after between seven and 12 years.
Powering your home with solar not only allows you to get your electricity from a clean source, but provides an unmatched return on investment that will save you money on your energy bills and boost the value of your home.
