Google is looking to reduce headcount in its Access segment. Access is Alphabet's internet division and also houses Google Fiber. The group CEO is said to have stepped down. Google is now focusing on developing cheaper alternatives for delivering internet access.
Access CEO Craig Barratt announced his departure via a blog post. He stated that he would be staying with the company in an advisory role. While his blog post did not mention any layoffs, Ars Technica reported that nearly nine percent of Access employees may be laid off or reassigned. The company might also pause or terminate its fiber operations in 10 cities.
Google Fiber currently offers fiber internet service in eight metro areas and is fully committed to developing the infrastructure in another four areas. The company may pause its operation in nine cities including Dallas, Los Angeles, Tampa, Portland, Phoenix, Jacksonville, San Diego, Oklahoma City, and San Jose.
Google's Access division has been under strain for quite some time now. Earlier this year, Alphabet CEO Larry Page allegedly asked Barratt to reduce the size of the Google Fiber team. It is likely that Google Fiber was not able to meet its subscriber numbers.
Alphabet is likely to make a move towards wireless internet. It recently acquired Webpass, which specializes in high-speed wireless internet.
This will not be the death knell for fiber as the company plans to go ahead with its activities in Chicago and Irvine.