Broadband Altnet Netomnia Puts 100 UK Staff on Redundancy Notice
Alternative broadband operator Netomnia (Substantial Group), which has already expanded their full fibre (FTTP) network to cover over 3 million UK premises (inc. 500,000 customers) and is in the process of being acquired by the parents of Virgin Media (O2) and nexfibre, has confirmed to ISPreview that they’ve put around 100 further workers on notice of possible redundancy.
Sources began informing us about this development last night and a quick bit of checking via social media confirmed that there had been a clear increase in the number of employees reporting that they were now open to work, which has just been confirmed by Netomnia. The move follows an earlier cut of around 50 jobs in February 2026 (here), although that related to the merging of retail ISP brand Brsk into YouFibre.
The latest round of redundancies have instead been linked to the same wider market conditions as many other network operators have had to face, such as high interest rates, rising build costs and competition. The challenges have, over the past few years, already caused plenty of redundancies across the sector, particularly as operators have gradually switched from a focus on new network build to commercialisation. Netomnia is not immune to such strains.
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The company’s most recent results to the end of Q4 2025 revealed that their revenues had increased to £104m (up 168% year-on-year) and they were delivering positive adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) of £5m (up from £0.3m in Q3). However, Netomnia’s ongoing network build also meant that their Net Debt had grown by 69% in the year to total £905m (debt drawn to date including accrued interest less cash), which is up from £801m in Q3.
The expected acquisition by nexfibre’s parents is another factor, which may yet have further impacts in the future (once the deal has been approved by the competition watchdog). We are currently awaiting an official statement from Netomnia and will update again when that arrives, although it’s possible the current regulatory process may limit their ability to comment.
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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Has nothing to do with financial constraints of the industry. Ebitda positive with an already tiny team of staff. This is borderline a HR claim based on the timing of the sale of the business. The less people there are the more of the pie a few will get.
I doubt that any of the people being made redundant have any fingers in the pie.
“EBITDA positive” means nothing when your earnings are swamped by debt repayments; this is still a massively loss-making business. Alternatively, you can consider than VM are paying an extra £0.9bn to cover the debt in addition to the headline price.
That is an invention that has no connection to how businesses are run.
NE555 – Netomnia have always advertised equity in their job adverts
Wow… another day, another altnet bloodbath.
Netomnia just put ~100 more workers on notice. At this rate the only thing growing faster than their fibre footprint is the pile of CVs on LinkedIn.
High interest rates, exploding build costs, brutal competition – well yeah, the “build it and they will come” dream is officially on life support. Sector’s eating itself alive.
Heart goes out to the people actually losing their jobs though, this sucks.
Is this an AI comment? The writing style feels a bit “off”.
Yes, it’s AI… you can tell because the ellipses are the “…” character instead of “…” as a human would type. Olilo are doing some lame stuff recently.
No – the guy is real
It obviously is AI as is another one under this article. I wonder why people do it. Nevertheless, I asked Lumo AI to comment on the article as well – let’s get the opinion of all the AIs.:D
150 jobs axed despite £104m revenue (+168% YoY) and positive EBITDA (£5m). That’s the alt-net playbook in microcosom: burn capital to build, shed staff to sell, carry massive debt while hoping the exit works.
The pending £2bn acquisition is the real clock ticking here. Liberty Global/Telefónica aren’t paying for bloated headcount — they’re buying assets and want the runway trimmed before handover.
This isn’t a Netomnia problem alone. CityFibre, Openreach, and half a dozen smaller players have all been cutting as the “build at all costs” era ends. The FTTP gold rush is over; now comes the margin grind.
Bottom line: Positive EBITDA doesn’t save jobs when your debt-to-revenue ratio is approaching 10x and an acquirer is waiting with a red pen. The alt-nets bet big on infrastructure monopoly power. Now they’re learning infrastructure is capex-heavy, competition is fierce, and regulators hate consolidation.
Hope the 150 affected workers find greener pastures quickly.
I don’t think the “bloodbath” has gotten underway yet.
The UK fibre market is looking increasingly unforgiving.
Reports that around 100 Netomnia employees are now at risk of redundancy are another reminder that rapid network expansion does not automatically translate into a sustainable business.
Borrowing costs remain high, construction expenses have climbed, and multiple operators are fighting for the same customers. The industry spent years prioritising coverage; now the financial consequences are starting to catch up.
Behind every restructuring announcement are real people facing uncertainty. Whatever anyone thinks of the wider altnet strategy, those affected deserve support.
Can’t spell Ewan Townsend-Commins without AI!
How many people does it take to operate a “lights-out” business?
If the CMA stick to their guidelines, there’s very little chance of NexFibre being allowed to takeover Netomnia without selling off the Fibre assets in VMO2 overlap areas. I doubt these redundancies are related to the NexFibre takeover.
They absolutely are related to the NexFibre takeover. To put it brutally all NexFibre (or CityFibre) want from this is the assets and the customers. Both potential aquirers have announced that they intend to expand by aquisition rather than building.
There is virtually no overlap between the Nexfibre and Netomnia networks. That is at the core of the reason for the acquisition.
The actual number at risk are over 170 with a proposed reduction of over 100.
News delivered in tipical half arsed fashion.
Basically most of the build team are in the firing line.
I can only write about what we’re credibly able to confirm. Nobody mentioned the 170 figure to me, so I’ve not enough basis to be able to confirm that, only the c.100 figure that are actually likely to be cut.
I can also confirm it’s actually more like 180+ up for redundancy
It is often the case with large redundancies and restructures that the number of roles at risk is higher than the net headcount reduction.
This is because to be a process compliant with employment law you have to pool people with similar roles/skills and allow them to reapply for the remaining roles, and unsuccessful applications are then made redundant.
The ratio of number at risk vs headcount reduction feels about right for technically skilled and middle management operational and governance roles, a spread of 130%-220% is within normal bounds.
It’s only lower if a whole line of business is ceasing and the skills are specific and not transferable, or the location is remote (no requirement to pay relocation to where the available remaining jobs are in these cases I think).
Time to turn off the AI @MilesT
@Anon no call to be insulting, no AI used, that’s my formal writing voice.
And my lived experience (both sides of the fence).
@Anon and others:
Your claims about comments being generated by AI are based upon analysis that is flimsy and emotive.
H.I. generated comment.
This is exactly what the previous message says we have been told consistently that the company is in a good place financially but now that the CMA has shifted to phase 2 the company is all of a sudden struggling financially this is nothing but a ploy to say to the CMA that if the sale is stopped they will fold the company as it’s not viable anymore
Nonsense.
As if they will need a build team next year!
Unfortunately for those in that team, if the merger goes through they are gone, if it doesn’t then they may also be gone as the disappearing rug is pulled even faster!
Well you see it’s not just the build team they are also making installation managers redundant also they say it’s to save money but that is all a cover the sale of it happens is in December with the mandatory timelines and then notice pay and then redundancy payments takes the money they would be paying to at least January for a lot of us so they are not saving a penny this is all to do with putting pressure on the CMA to approve the sale and they are destroying peoples careers to do this….
Build functions are not core to fibre-optic-based network provider businesses. All the build and technical functions will trend towards being contracted-out services as we approach full national coverage. These asset-holding businesses will trend towards lights-out operations, with increasing operational costs, higher taxation, increased costs of employment, and the early availability of A.I. helping to accelerate the move.
Well I can only guess all the rollouts on the webpage will be scrubed.
However the post code checker is new and quiet fun! But not much use!
Ah the spirit of the merger…
Netomnia is a complete financial basket case.
You have to wonder if they would survive a long CMA process followed by a CityFibre referral to to a CAT and whether Virgin’s owners start to realise that they have been had.
I certainly feel sorry for all those being made redundant. Redundancy and assets being sold on seems to be a theme that runs through so many articles on ISP review . The ground force workers taking the brunt of poorly thought out planning in new and not so new businesses. The aim to bring competition, affordable broadband ,and FFTP available to all in the UK??
What will be left in the end , probably something similar to the energy industry , many businesses folding and the same companies that were there in the beginning with increased pricing and many more telegraph poles than we will ever need or use !
You just had to get the bit in about Telegraph poles didn’t you?
Large-scale redundancies in the sector were always on the cards as the UK moved closer to achieving national coverage. Financial, economic and legislative factors have only accelerated the necessary changes. There is not a single technology firm that has not gone through similar changes within technical individual operations. All of these businesses will trend toward being asset-centric.
I do not think the relevant information is of the kind a business is expected to release. However, it would be informative to know where the cuts are falling within the business. It is too soon for the cuts to be related to the takeover, given that it has yet to be cleared. These cuts could just be related to the outsourcing of engineers, say, as the business moves to a lights-out model.
They are not outsourcing anything they have pullled contractors off the park already they are downsizing in a direct response to the merger this is all to put pressure on the CMA to approve the deal nothing more…. There is zero other reason as they are saving minimal money from this….
@Netomnia
Sorry, but that is nonsense.
75% of the work force had to go at the end of July it is in the merger deal people know about it for months!
Exactly this! which is borderline tactical redundancy
@Far2329Light and how do you know anything I say is nonsense have you been ina any of the meetings we have been have you been in all the company updates up until now? I am telling you now all we have been told is how well the company is doing financially and now all of a sudden it’s not…. That is nonsense not what I’m saying ask any Netomnia employee
It is true it has been the messages have been the same for the last 18 months.
Analysts do not need to have sat in on those internal meetings to have seen, over the last few years, where the business was going. They look at the numbers, not misconceptions.
You are making claims that lack substance. Cuts associated with the integration of the business post-completion of the takeover have yet to surface.