Alphabet Inc (NASDAQ:GOOGL) just saw another top executive leave its ambitious Google Fiber project, as the unit appears like it could be destined for phasing out over the next several months.
CNBC has more details on the key departure:
Google Fiber, once one of the internet company’s most audacious projects, just lost another executive as the business struggles to gain traction.
Gabriel Stricker, who joined Fiber from Twitter in late 2015, was serving as vice president of communications and policy. CNBC has learned that he left to become vice president of communications at Niantic, the gaming company that created the viral Pokemon Go app.
What once was seen as the future of internet access has quickly become an afterthought for Google. Over the past couple of years, Fiber has enacted strict cost-cutting measures, laid off many employees, and seen two CEOs quit.
Still, Google Fiber provides gigabit internet service in 12 cities currently through fiber to the home networks. Additionally, Webpass (a Google Fiber company) offers a high speed wireless service in 8 more cities. In 2017, Fiber was brought to three new markets: Huntsville, AL, Louisville, KY, and San Antonio, TX.
Given the high amount of turnover and lack of market penetration, it wouldn’t be a surprise to see the unit shuttered by the end of 2018 at this rate.
Alphabet Inc shares fell $7.58 (-0.68%) in premarket trading Wednesday. Year-to-date, GOOGL has gained 5.64%, versus a 2.88% rise in the benchmark S&P 500 index during the same period.