UK altnet CityFibre has reportedly proposed organizational changes that could put up to 200 jobs at risk.
ISP Review first reported that CityFibre informed staff internally yesterday of the potential cuts, subject to consultation.
The layoffs are said to be in response to the current market environment, which is saturated, while consolidation of the many altnets has been slow.
ISP Review reports that the memo to CityFibre staff states that market conditions are “not moving at the pace we anticipated,” while delaying expansion of the company’s fiber network footprint.
Founded in 2011, CityFibre is the largest of the altnets (alternative network providers) that are building out full fiber networks in the UK, competing against incumbents Openreach and Virgin Media O2.
The company has so far passed more than 4.7 million premises, while CityFibre has ambitions to reach 8 million in the coming years.
In a statement to DCD, the company said it’s looking to optimize its cost base.
“Establishing CityFibre as the third national network the UK deserves requires an agile and efficient organization. With a network now serving over one million connections and customer numbers growing 20 percent in the first six months of this year, we are continuing to drive strong, profitable growth and are accelerating plans to optimize our cost base,” said a CityFibre spokesperson.
“We will support our people throughout this process and ensure that CityFibre remains best positioned for long-term, sustainable growth.”
It was previously reported earlier this year that CityFibre cut 450 jobs, around a third of its total workforce.
Last year, the company secured £2.3 billion ($3.1bn) in financing to support the funding of its fiber build-out.
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