Google’s parent company Alphabet is going to cut the size of its staff working on Google Fibre, 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 Fibre has failed to attract as many subscribers as originally projected, according to the report.
Fibre 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 Fibre division and the staff will be reduced to about 500, the report says.
Alphabet has not responded to a request for comment.
Google Fibre 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 Fibre 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 fibre internet cables.
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