Google Fiber hits pause button and planning to reduce staff count by 9 percent

Google Fiber hits pause button and planning to reduce staff count by 9 percent

Google Fiber has announced that it won’t expand in other cities for the moment as the company aims to push forward in wireless segment. Alphabet currently operates its fiber internet division under brand name Access. Access CEO Craig Barratt informed that he will be staying only in advisory role and also hinted that the company plans to lay-off some of its employees.

A report published by ArsTechnica has informed that nearly 9 percent of current Access workforce will be laid-off. Google Fiber was earlier planning to expand its services in Los Angeles, Dallas, Tampa, Jacksonville, Portland, Phoenix, San Diego, San Jose, and Oklahoma City. However, the new report suggests that the company has hit pause on future expansion.

However, Google Fiber could improve its coverage in Chicago, San Francisco, Irvine, San Antonio, Huntsville and Louisville.

In an official blog post, Craig Barratt, SVP, Alphabet and CEO of Access said, “Just as any competitive business must, we have to continue not only to grow, but also stay ahead of the curve — pushing the boundaries of technology, business, and policy — to remain a leader in delivering superfast Internet. We have refined our plan going forward to achieve these objectives. It entails us making changes to focus our business and product strategy. Importantly, the plan enhances our focus on new technology and deployment methods to make superfast Internet more abundant than it is today.”

As per Bloomberg report, Access currently employs 1,500 people and Google Fiber division has 1,000 employees. Some of the employees could be shifted to other divisions at Alphabet.

A report published by ArsTechnica informed, “Separate from the fiber deployments, the Google Fiber-owned Webpass operates in Boston, Chicago, Miami, San Diego, Oakland, and San Francisco. Webpass provides fiber-like speeds, but with the downside of more limited deployment. The wireless technology is cost-effective for multi-unit residential buildings and businesses, but not in suburban single-family homes.”



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