Alphabet Inc (NASDAQ:GOOGL) has put on hold its Google fiber expansion plans in 10 cities amid the stepping down of Google Fiber chief executive Craig Barratt.
Alphabet has also laid off some of its Google Fiber employees in various cities. The company brought the expansion of its Gigabit speed internet service to a halt on the grounds of ongoing talks with city officials. It is also not clear why Google Fiber executive Craig Barratt decided to step down from his position. He, however, stated in a blog post that he would still be a part of the initiative but only as an adviser.
“We’re confident we’ll have an opportunity to resume our partnership discussions once we’ve advanced our technologies and solutions. In this handful of cities that are still in an exploratory stage, and in certain related areas of our supporting operations, we’ll be reducing our employee base,” stated Barratt.
The company announced that it stopped its operations in eight more areas where it has ongoing activities. Some of the cities that will be affected include Oklahoma City, Portland, Phoenix, San Jose, Los Angeles, Tampa, and Jacksonville. The former executive did not reveal how many people will be affected by the job cuts. Barratt also noted that the situation will be temporary and that the company expects to continue its operations soon. The company will also continue to provide its services in numerous cities where Google Fiber is already operating.
Alphabet is not looking to immediately replace Barratt. Google Fiber is also expected to continue with its mission of offering high-speed internet services. The company recently acquired an internet service provider known as Webpass as part of its plan to expand its service. Webpass operates in six metro areas which make it an ideal acquisition for Alphabet. Google Fiber has been having a hard time reaching its targets and the cost of setting up Fiber connections is also high.
Alphabet stock closed the last trading session at $828.55.