Broadband Altnet CityFibre Notifies 200 UK Staff of Possible Future Redundancy
The UK’s largest alternative full fibre broadband network, CityFibre, has this morning proposed organisational changes that could result in 200 roles being impacted, subject to consultation. The move is said to be a response to the current environment, where market conditions remain difficult and there has been “slower progress on consolidation“, impacting their near-term growth.
At present CityFibre’s 10Gbps capable full fibre (FTTP / XGS-PON) broadband network currently covers over 4.7 million UK premises (4.5m Ready for Service), including over 1 million connected customers, and they still aspire to cover 8 million premises in the future. The FTTP network is supported by UK ISPs such as Vodafone, TalkTalk, Zen Internet, Sky Broadband and many more.
However, the operator also carries a lot of debt (c.£3.7 billion net debt) and still faces many of the same pressures as other operators (e.g. high interest rates, rising build costs and competition), which in recent times has already caused hundreds of redundancies earlier in 2026 (here). The recent move to sell their non-core off-net business, Entanet, may have also had an impact (here), as well as the inability to secure a consolidation deal with Netomnia (VMO2/nexfibre outbid them).
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Suffice to say it may not come as a huge surprise that more jobs are likely to go in the future. ISPreview understands that CityFibre held an All Hands meeting today to provide some context for the latest development, which could impact around 200 roles (we don’t yet know precisely how many of these will face redundancy).
A CityFibre spokesperson told ISPreview:
“Establishing CityFibre as the third national network the UK deserves, requires an agile and efficient organisation. With a network now serving over one million connections and customer numbers growing 20% in the first six months of this year, we are continuing to drive strong, profitable growth and are accelerating plans to optimise our cost base. We will support our people throughout this process and ensure that CityFibre remains best positioned for long-term, sustainable growth.”
In a letter to staff that was shared as part of the meeting and signed by CityFibre’s CEO, Simon Holden, the operator highlighted how their shareholders “remain confident” in the company’s strategy and continue to support them. But the company also acknowledged that market conditions are “not moving at the pace we anticipated” and there has been “slower progress on consolidation“, which has delayed the expansion of their network footprint and affected near-term growth.
CityFibre is understood to have a three-year plan to help shape their operating model at maturity, which is intended to move the company towards a better position by “simplifying” the organisation and aligning resources more closely to their priorities. “We believe these proposals are the right step to accelerate our operating model and position us well to continue to attract the capital we need,” said Simon.
The move is likely to worry the provider’s retail ISP partners, particularly given the recent concerns over a decline in the company’s support quality (here), although such changes ultimately appear to be necessary to help support the sustainability of the underlying business. CityFibre is currently understood to employ somewhere around 1,000 staff.
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Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook, BlueSky, Threads.net and Linkedin.
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We’re barely 2 weeks post the last round of redundancies, if you work in the Telco industry I’d advise going to Openreach, Virgin or getting out of this absolute joke of an industry.
All my respect has been lost, what a shambles of a company.
Openreach just announced closure of Liverpool office with 600 jobs..
Also still in process of cutting 50k engineer roles…
VM is not much better at moment.
It is the sign of the times sadly, as Badem posted, others are doing the same.
Our government have not helped the situation.
I feel for the people losing their jobs and hope they can get something somewhere.
Openreach have 2 vacancies at the minute. A commercial forecasting manager and people and culture practice manager. As an Ex OR engineer all I am seeing online and hearing from former colleagues is Voluntary redundancy being offered and downsizing of the staffing levels.
Nothing says “customer experience” quite like cutting another 200 jobs.
If support, provisioning and fault resolution become even slower, don’t be surprised when ISPs and customers start asking why.
Thoughts are with those whose jobs are on the line.
“slower progress on consolidation“. Well there will be if VMO2 keeps taking out your targets from under your nose.
I left 3 years ago on the 1st round of redundancies and have multiple of friends still within the company!! surely they are gearing up for a sell or going bump!!! the effect this has on people still working their is outrageous!! their poor mental health!!
I suspect potential buyers are already circling the business, but the most beneficial buyer might get into issues with the CMP if it were to make an offer.
If cityfibre pull their finger out and make some acquisitions, then this is perfeclty sensible. I worry the longer they fail to buy anyone, the ground beneath them is rapdily being eaten up.
With what? They dont have any cash and the equity is likely worthless..so only option is to buy another worthless company (for zero), which isnt going to require an extra 200 FTE
The fundraising last year included £800m ring fenced for acquisitions:
https://cityfibre.com/news/cityfibre-agrees-2-3bn-in-new-financing-round-in-major-investment-in-uk-digital-infrastructure
Facts – the money may be ringfenced but that doesn’t change the fact that their failure to buy Netomnia is now starting to hurt. There aren’t too many altnets that would be a logical fit for CF (ie, an urban focus and a desire to ignore 75% of the country) which don’t an overbuild level high enough to make any buyout nonsensical.
The question of where do they go from here is a very pertinent one indeed.
They were squeezed out of any potential deal with Netomnia by VMO2 which on the face the face of it looks like a spoiler by VMO2. You wonder what else VMO2 may do to stymied them.
@Big Dave
The Telefonica/LG acquisition of Netomnia was of strategic value, given that it will allow the wholesale business to accelerate its migration to fibre.
It was not a “spoiler operation”; businesses simply cannot afford frivolous expenditure. This was a takeover that was in the planning for some time
@Far2329Light VMO2 are 80% overbuilt with Netomnia and can upgrade their own network for £100 per premise whereas they are paying £600 per premise for Netomnia. Not only that they would be using their own PIA whereas Netomnia exclusively use Openreach PIA so why would VMO2 pay rent to Openreach and not use their own infrastructure?
It’s a tacit admission from VMO2 that their own PIA is in an unfit state, and it would be far harder and more expensive to upgrade than they have let the market believe.
@Big Dave
There is virtually no overlap between Netomnia and Nexfibre. That did not happen by chance.
I took VR when there i could see what was happening this is very sad for the people that remain as who now are they going to pick on i have seen some great people go. But belive me some that left know the end result before others if the ceo and others are stepping down ask yourself why they are taking a quick exit.
Greg the old CEO was booted out by investors as he lost control of costs.
The new CEO is ex Goldman Sachs, dropped in by the investors to sort the problem out. But to put so many people at risk, only 2 weeks after the last round finished, suggests they don’t really have a long term plan.
This is nothing new as there has been at least three previous waves of job cuts since 2023. The days of building out with cheap financing are truly over (but don’t rule out buying small loss-making altnets), with CityFibre’s shareholders now demanding survival and getting more users onto its network.
This is crazy ! Cityfibre have never known what its really wanted most attempts failed. They employed there own cliv Teams to then get rid. Then employed there own installation team to get rid or to fit in a role too many AFQS FQS, as thought sky would be a great hit. Have this wonderful training centre sitting idol using resources with traning staff not traning get rid of them !
Let’s look at the first-hand reality of what is happening inside CityFibre right now. The company is actively purging its veteran workforce and erasing decades of collective experience. By rebranding existing roles with shiny new titles, management is attempting to disguise a sweeping cost-cutting or restructuring exercise. The fact that these repackaged positions are being handed directly to individuals with absolutely no background or experience in the role is a disservice to both the remaining staff and the clients who rely on their expertise.
I wish their customer base the best of luck…
Sounds like they are trying to sort out their short-term profitability ahead of a sale or listing. It will look to investors on paper, but in the long-term the company will suffer and perhaps even fail.
People always say this but does it really work? I can’t imagine people managing that kind of money are really so naive.
My suspicion is that Vodafone will sweep in and buy them tbh.
As an employee who was made redundant during the June 2026 redundancies im not surprised all by this! I said and will say this isnt going to be the last of it! Any counter proposals wasnt even read and clearly not even took into consideration at all!
Feel sorry for who is still left!
To rub salt into the wounds redundant employees have had an email from CF to ask if we want to apply for entanet positions….
It seems the government and telecommunications industry’s plan to encourage more competition forgot to realise that having multiples of competitors wanting to gain the same custom would be doomed to failure for all those without a sound business plan including financial backing good service and reliability.
Indeed.
Very strange telecom market in-house for both BT and Citifibre being outsourced to Kelly’s and JJ Quinn price work with all that in house experience gone for bang out as many jobs with little in quality sure this will come back to hurt
Who’s going to acquire CityFibre I wonder? They couldn’t get it together for Netomnia and now this… vicious circle gone wrong. I think some cuts at the top might not be a bad idea.
I think there is really only one path for CityFibre, but if the bid materialises, it will cause shockwaves throughout the UK telecoms market and it would potentially put the government in a very difficult position trying to reconcile multiple conflicting interests.
Too late now, but if we were going to have a third national network then it should have been that with franchised areas that could be integrated with each other with a single wholesale platform.
@Big Dave
A single wholesale platform is no answer at all, given that it would lead to inflated prices due to the absence of competition.
On the other hand, half a dozen major players is too many. The UK market can only sustain about three major players. Three major players would be able to compete against each other while being able to generate sufficient revenues to maintain and invest in the infrastructure and services.
Sat on the beach on my hols that I desperately needed after the last redundancies, to learn I’m up for Redundancy yet again.
Crazy times indeed.
I really feel for the hardworking loyal staff that are at risk literally 2 weeks after the last redundancies. Cityfibres really do not have a clue and certainly do not care about their staff, the company has been completely mismanaged from the top, if it was not so serious i would laugh at how badly this company has been /. is run. They are like gambling addicts let lose in Las Vegas, how much money was wasted on the rebranding (i am still unsure as to why) roles were created without any real job description, and in many cases roles overlapped. If i were an investor….let’s just say i would be unhappy. I remember all too well Greg stating on an all hands call that CF were the big guns, that they would take over BT’s position…….and it reminded me of the comical ali situation when Allied tanks were rolling into Baghdad as he stated that not one allied solider has entered the city. I sincerely hope that all the staff find something and end their mental torture form CF.
The new leadership team has taken the necessary steps to turn around the business. Such exercises frequently result in continuous waves of redundancies as the necessary changes are implemented.
So glad I’m out of Cityfibre, in fact out of the industry completely.
After giving my all, propelling Cityfibre forward with my marketing team, my reward was redundancy.
Good luck to those employees remaining!