Google may cut the size of its Fiber business in half

Google fiber trucks
George Frey/Reuters

Google’s parent company Alphabet may cut the size of its staff working on Google Fiber, its internet service provider, in half, according to a new report by Kevin McLaughlin in The Information.

CEO Larry Page ordered the cuts since Google Fiber has failed to attract as many subscribers as originally projected, according to the report. It is unclear if the cuts have happened.

Fiber executives initially hoped to attract 5 million subscribers in five years; in about two years, the service has only managed to attract around 200,000 subscribers.

There are about 1,000 people in the Google Fiber division and the staff will be reduced to about 500, the report says.

An Alphabet spokesperson declined to comment on The Information’s report.

Google Fiber launched in Kansas City in 2012 as an alternative high-speed internet and TV service to traditional cable companies. It offered gigabit internet speeds, which is several times faster than internet speeds you get from cable modems. Google Fiber is now available in a handful of select cities in the US.

Recently, Google has been exploring how to deliver gigabit internet speeds wirelessly, which would eliminate the expensive process of digging up streets and installing fiber internet cables.