CityFibre is reportedly planning to cut around 450 roles, roughly a third of its 1,400-strong workforce, as the UK wholesale fibre operator restructures its business and shifts strategy from network build to buying rival altnets.
The redundancies are expected to fall mainly on engineering teams, reflecting the move away from large-scale construction activity. In a note to staff, chief executive Simon Holden said CityFibre’s present structure was “no longer the right fit for where our business is heading” and action was needed. He added: “This is not something we take lightly, and we are committed to working through it together. We believe these changes are necessary to ensure CityFibre continues to deliver for customers while remaining resilient and well-positioned for the future.”
CityFibre reported record revenue of £170 million (€196m) last year and has been leaning on a wholesale deal with Sky to drive take-up, but it is also carrying heavy debt and operating in a market where higher interest rates and slower customer migration have increased pressure on challenger networks.
The company is widely seen as a potential consolidator as weaker players stumble, with recent examples including G.Network, which recently collapsed into administration after being taken over by private equity firm FitzWalter Capital, and lenders including NatWest circling rural provider Gigaclear.
