Oct 27, 2016

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Google’s parent company is halting operations and laying off staff in a number of cities where it once hoped to bring high-speed internet access by installing new fiber-optic networks.

The company also announced that Craig Barratt, a veteran tech executive who led the ambitious – and expensive – Google Fiber program, is stepping down as CEO of Access, the division of Google’s parent company, Alphabet, that operates the five-year-old program.

In a statement, Barratt said Google Fiber would continue to provide service in a handful of cities where it’s already operating, including Atlanta, Austin and Charlotte.

But it will pause further plans in at least eight more metropolitan areas where it has been holding exploratory talks with local officials. Those include Oklahoma City, Phoenix, Dallas, Tampa and Jacksonville in Florida, Portland in Oregon and Los Angeles and San Jose in California.

Barratt didn’t say how many jobs would be cut. His statement described the Access business as “solid”, but said it would make “changes to focus our business and product strategy” and incorporate new technology.

A recent report by the tech news site the Information said the business was under pressure by the Alphabet CEO, Larry Page, to cut costs after failing to meet financial goals, including a target of signing up five million subscribers.

Barratt said he would continue to serve as an adviser to Page.