Two months ago, it was reported that Alphabet CEO Larry Page wants the Google Fiber division to cut costs as the high-speed internet service has fallen well short of the targeted number of subscribers.
It was said that Page and Google cofounder Sergey Brin have found the expenses and rollout of Google Fiber to be disappointing, forcing them to launch appropriate measures.
In the continuation of Google Fiber's struggles, Access, which is the Alphabet unit that contains the business, will be laying off employees and will start to look for a new CEO amid the search for a cheaper way to connect cities to the internet service.
Outgoing Access CEO Craig Barratt, in a post on the official Google Fiber blog, announced that for most of the potential Fiber cities operations and offices will be paused as the division refines its approach. Barratt expressed gratitude toward the cities for the assistance that they have provided so far, while showing confidence that the partnership between Google Fiber and the cities will resume once the appropriate advancement in solutions and technologies are made.
Barratt added that he will be stepping down from his post as Access CEO, though he will still be around in an advisory role as requested by Page.
In addition to Barratt, many other Access employees will be affected by the pause of operations. These employees, who have been working in local offices that were set up in potential Fiber cities, will be paid off.
The blog post of Barratt did not specify the number of employees that will be let go due to the changes coming to Google Fiber, but a source told ArsTechnica that 9 percent of the Access unit will see their jobs cut. Not all of the employees will be losing their employment in Google though, as some may be moved to work in other Alphabet units.
Access is pausing Google Fiber operations in nine cities namely Dallas, Jacksonville, Los Angeles, Oklahoma City, Phoenix, Portland, San Diego, San Jose and Tampa. Several other cities, specifically Chicago, Huntsville, Irvine, San Antonio, San Francisco and perhaps also Louisville, could still see deployment.
The unit is pausing the rollout of Google Fiber due to the planned shift of the business into wireless, which is a much cheaper and faster way to roll out the service compared to having to build out fiber optic networks.