Google Fiber loses CEO; halts expansion plans

Craig Barratt has left his position as CEO of Access, the division that is leading Google Fiber. The company's expansion is placed on the sideline as well, with possible downsizing on its way.

Fiber, one of Google's "moonshot" projects that focus on bringing gigabit-speed internet to the US via fiber optics, will still continue service to the locations where they have established their market, according to ABC News. It will, however, discontinue their plans to provide service to several more areas, including Los Angeles and Oklahoma City. The expansion halt would also bring a reduction of staff. As Business Insider reports, around 9% or more than 100 employees will be removed from the program or reassigned, primarily those working in the development of the service in the new areas.

Barratt's departure marks the third C.E.O. to leave Alphabet, Google's parent company, within the last 12 months, as reported on Vanity Fair. This comes after second quarter reports indicate that Google's Other Bets division (which includes Fiber) lost a combined amount of USD 859 million, on revenue of USD 185 million. Fiber has been experiencing its own setbacks since it first gave internet access to the residents of Kansas City in the early 2010's. Google Fiber's infrastructure, which relies on fiber optic cables that need to be buried underground, has been costing the company a lot over the years. Add the USD 1 billion the company spent just to enter the market, and the slow increase of costumers, business has been really slow. This prompted Google execs to instruct Barratt to cut headcount and lower down expenses. It is unclear though if the situation is the reason for the C.E.O.'s exit.

Google Fiber will now be focusing on redirecting its service from fiber optics to wireless technology, which would be more cost-effective and wider in reach. Barratt, who joined Google in 2013, will be with them still, though now as an adviser.