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Google Fiber Laying Off Workers In Restructuring

16.02.17 16:20

MOUNTAIN VIEW (dpa-AFX) - Google Fiber, the high-speed Internet service of Alphabet Inc.

, is laying off several hundred employees as it transitions to wireless service instead of underground fiber-optic cables, according to media reports.

In addition, Greg McCray will reportedly be the new CEO of Access, the Alphabet unit that controls Google Fiber and other small Internet projects.

McCray is a long-time broadband executive and former CEO of Michigan-based Aero Communications Inc. He succeeds Craig Barratt, who stepped down in October 2016.

In October, Alphabet stopped the rollout of Google Fiber in some cities in the United States. Access said it will lay off employees and also replace CEO Barratt. At that media reports indicated the division would lay off about 9 percent of its staff.

However, the latest job cuts will reportedly affect more workers than the October layoffs. Several hundred Access employees are said to be moving to new jobs at Google or other Alphabet companies.

Last August, the Wall Street Journal reported that Alphabet is rethinking its high-speed internet business after initial rollouts proved more expensive and time consuming than anticipated.

Google's announcement in 2010 of its Fiber project sparked high expectations at a time when telephone companies were perceived as moving slowly in rolling out faster broadband service. More than 1,000 cities applied and Google began service in the Kansas City area in November 2012.

Copyright RTT News/dpa-AFX


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