According to both Fortune and The Verge Nest is going through a restructuring-- Alphabet management has moved the entire Nest platform team to Google in order to create "a unified Internet of Things platform."

Leading the effort is longtime Google exec and current senior VP of Android Hiroshi Lockheimer. An April 2016 Recode story claims Lockheimer is working closely with ex-Motorola president Rick Osterloh on a Google "living room" hardware suite bringing together the Chromecast, Chromebooks, Nexus devices, the OnHub router, the ATAP experimental hardware lab and what remains of the Google Glass team.

Apparently the reshuffle of engineering resources comes as Google prepares to launch its take on the voice-controlled Amazon Echo-style speaker, the Google Home. It also makes sense, since the Home speaker was announced at last May's Google I/O developer conference with no word of strategic partnerships with 3rd party products... partnerships Nest already has in place with the "Works with Nest" program.

Companies already making part of Works with Nest include the likes of Belkin, Philips and August.

Fortune also points out the moving of "dozens" of engineers from Nest to Google reduces payroll costs, thus "dramatically" improving the financial situation at the smart thermostat maker. The engineers will reportedly work under Lockheimer on 3rd party integrations, and come from the same team behind Brillo and Weave, the Google IoT and home automation platform and protocol technologies.

Nest has been struggling to come up with new products (not to mention profits) after it was spun off as a separate entity after the big Alphabet reshuffle, leading to the departure of CEO and co-founder Tony Fadell.

Go Google Will Absorb Nest Developers (Fortune)

Go Google is Taking Dozens of Nest Engineers to Work on the Smart Home (The Verge)