According to a letter seen by the Financial Times, the fibre operator plans to eliminate 450 roles out of a total workforce of around 1,400. 

The reductions come after the company completed a £2.3 billion refinancing last year and are intended to simplify its operations.

The move comes as the UK’s altnet fibre sector aims to compete with providers such as BT and slashes costs, as many players face higher interest rates and intense competition.

In a message sent to employees on Wednesday, CityFibre’s recently appointed chief executive, Simon Holden, said the company’s “current structure” was “no longer the right fit for where our business is heading.”

“Instead, we need a simpler operating model that supports the expansion of our footprint at pace through M&A, leverages our heavy investment in systems and capabilities, and focuses on delivering market-leading services for our customers at the best possible economics,” the letter stated.

The news comes as the telecoms giant revealed revenues climbed up to £170 million last year, representing a 25% year-on-year increase, while adjusted EBITDA surged 460% to £29 million, driven by accelerating adoption across the network.

According to the telecoms giant, it has achieved over 20% penetration in its consumer footprint, with more than 70% of households switching broadband providers opting for the CityFibre network where available.

As a result, the company is “on track” to exceed 30% penetration by the end of this year.

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