Alphabet’s division for developing new technology is laying off dozens of workers as it turns to outside investors to help fund its projects, Bloomberg News reported Monday, citing people with knowledge of the matter.

The division, X Lab, is switching to a structure that will enable its ventures to be more easily spun out of the unit with support from Alphabet and outside investors, the report said, adding that the layoffs were focused on support staff.

“X tackles global challenges like climate change and connectivity and we continually look for ways to streamline how we bring our moonshots to life,” a spokeswoman for the division told Reuters.

X Lab is Alphabet’s research division that takes on special projects like “Taara,” which aims to bring internet services to remote areas of the world using beams of light. It has given rise to self-driving technology firm Waymo, drone delivery service Wing and health tech startup Verily Life Sciences.

It has recently been in talks with venture capitalists, sovereign wealth funds and private equity firms on funding, the report said.

Alphabet’s “Other Bets” unit, which includes X Lab and houses firms developing cutting-edge and experimental technologies, posted a $1.19 billion loss for the in the third quarter. But the figure was smaller than its $1.6 billion loss a year ago as the Google-parent reined in spending.

The move on Monday came days after Google said it would lay off hundreds of employees in its advertising sales team and its hardware, Voice Assistant and augmented reality teams amid its aggressive campaign to cut costs and improve efficiency.

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