Google Fiber is pausing expansion, changing CEOs


There were rumors that Alphabet was planning on slowing down Google Fiber to figure out how to make it a legitimately competitive and profitable service, and it turns out that wasn’t far off the mark.

Google Fiber has announced today that it will continue to work on any cities where it’s currently offered, and will continue to be built out if the work has already started, but they won’t be expanding to any other cities on the potential list anytime soon. That also comes with some employee layoffs, unfortunately.

Google says it wants to refine the approach used when figuring out where and how to deploy, which sounds like a professional way of saying “we’re bleeding cash doing this and we can’t continue without some drastic changes.” Rolling out a fiber network is incredibly expensive, even for Google, and making that money back isn’t always easy.

The CEO of Fiber, Craig Baratt, is also stepping aside, although he’ll hang on in an advisory role going forward.

This isn’t good news if you were excited for Fiber to come to your city, but it doesn’t mean that Google and Alphabet are throwing in the towel just yet. They’re still investing in other ways to bring gigabit internet to the masses (including gigabit WiFi) and whenever they figure out a way to deploy with fewer regulatory hurdles and cost, you can expect them to come out swinging again.

source: Google Fiber

About the Author: Jared Peters

Born in southern Alabama, Jared spends his working time selling phones and his spare time writing about them. The Android enthusiasm started with the original Motorola Droid, but the tech enthusiasm currently covers just about everything. He likes PC gaming, Lenovo's Moto Z line, and a good productivity app.