The Alphabet division that operates Google Fiber is laying off or reassigning about nine percent of its staff as well as “pausing” or ending fiber operations in 10 cities where it hadn’t yet fully committed to building. In an 11th city, San Francisco, the ISP has pulled back from a fiber deployment that was previously described as definite, but San Francisco will get a wireless service instead.
Google Fiber chief Craig Barratt will step down from his post and remain only as an adviser. He won’t be replaced immediately. This is not the end of Google Fiber, however: the Alphabet-owned ISP already offers fiber Internet service in eight metro areas and is still committed to building in another four. Google Fiber also recently purchased a wireless ISP called Webpass, which offers high-speed wireless Internet in six metro areas and seems set on expanding wireless service going forward.
Barratt revealed most of the news in a blog post that Google Fiber published with the title “Advancing our amazing bet.” The post doesn’t specify the number of layoffs, but a source familiar with the company’s plans confirmed that nine percent of the Alphabet “Access” division that operates Google Fiber will have their roles eliminated, though some of these people could be moved to other parts of Alphabet. The source did not say exactly how many employees that percentage represents. Access includes more than just Google Fiber, so the percentage of Google Fiber employees being laid off or reassigned is probably a little higher.
In August, a report by The Information claimed that Alphabet CEO Larry Page ordered Barratt to halve the size of the Google Fiber team to 500 people. Google Fiber never confirmed or denied that report, but it now seems the layoffs may not be as extensive as initially reported.
Alphabet headcounts are hard to come by, but this Bloomberg report says Access has about 1,500 employees. The Information report indicates that Google Fiber had about 1,000 employees before the layoffs. If both of those numbers are accurate, then the percentage of Google Fiber employees being laid off or reassigned to other parts of Alphabet might be around 13.5 percent.
Google Fiber apparently has not hit its subscriber goals, and fiber construction is a costly endeavor. While the company isn’t giving up on fiber entirely, it may be able to deploy Internet service at a lower cost using wireless technology.
Click here to read more.
SOURCE: ars Technica
Leave a Reply
You must be logged in to post a comment.