Google has not confirmed about the news of layoffs.
Those Google Fiber wire that we thought would speed up our internet, unfortunately, is not going to see the day of light as the California-based company has paused its ambitious project, with top officials and executives losing jobs in the mass layoff.
The news about Google pausing its fiber projects came after Craig Barratt, the CEO of Access, a division of Project Fiber, announced his stepping down in a blog that he posted on Tuesday.
Barratt in the blog post wrote, “In the cities where we’ve launched or are under construction, our work will continue.” He also added that earlier announced cities that were supposed to get Google Fiber will not be getting it soon as “we’re going to pause our operations and offices while we refine our approaches.”
Sending out a distress message to the engineers working on the Google Fiber project, he said Google will be “reducing employee base.”
According to CNN, Google is planning to lay off 9% of its employee base, which could number more than 100 employees.
When approached by media, Jessica Reeve, the Google Access spokesperson declined to comment on the status of Google Fiber project and the news about layoffs.
The Fiber project was first announced by Google back in 2010, promising its customers, 1000 MB/Sec speed that is 100 times faster than what they were getting back then. Since then, the Google Access team has been laying fiber optic wire across cities such as Kansas City, Austin, Provo, Utah, and nearly half a dozen others.
Now, it seems like these few cities will be the only once that will get Google’s internet service and other cities like Los Angeles, Dallas and Oklahoma City that were expecting faster internet through Google Fiber will have to wait indefinitely.
According to reports, the high cost involved in laying the fiber wires have put a heavy toll on Google, forcing it to pause the operation.
The parent company of Google, Alphabet, which was founded on October 2, 2015, by the two founders of Google, Larry Page, and Sergey Brin, is reportedly losing $859 million in June quarter from its other bet division, which includes projects such as Fiber.
“It shouldn’t be a surprise to anyone that building digital infrastructure is an incredibly costly undertaking, and it also shouldn’t be a surprise that it’s not a terribly profitable one,” says Craig Moffett, a telecom analyst with MoffettNathanson. “This kind of enterprises generally end in tears.”