ALLO Fiber Blames New BEAD Requirements for Layoffs
Fiber-optic ISP reduces staff by 9 percent across four states.
WASHINGTON, July 7, 2025 – ALLO Fiber has laid off 150 employees, including 42 in Nebraska, amid capital shortages and recent changes to the Broadband Equity, Access, and Deployment program.
At the end of June, ALLO Fiber President and CEO Brad Moline informed employees that they had until June 27 to resign voluntarily, with employment continuing until July 1 and the possibility of rehire. About 9% of employees were let go.
Despite recording customer growth – adding 9,500 customers in Q1 2025, up from 7,300 reported last year – Moline acknowledged that the company is “having a very good year, not yet an overall great year.”
FROM SPEEDING BEAD SUMMIT
Panel 1: How Are States Thinking About Reasonable Costs Now?
Panel 2: Finding the State Versus Federal Balance in BEAD
Panel 3: Reacting to the New BEAD NOFO Guidance
Panel 4: Building, Maintaining and Adopting Digital Workforce Skills
Although Moline stated that any resignations would be voluntary, he warned in an internal memo cited by Light Reading “[t]here may be a need for additional actions as we look to reduce our cash spend.”
Among the reasons listed for the layoffs was a reduced need for staff following the completion of infrastructure projects.
“As our construction of any market concludes, we require fewer personnel,” Moline explained. “While we retain as many employees as possible to support our growth, we must occasionally eliminate certain roles that are no longer required.”
A regional ISP based Imperial, Neb., ALLO provides high-speed Internet and other communications services in 53 cities across Nebraska, Colorado, Arizona, and Missouri.
Moline attributed much of the recent financial struggles to new BEAD program requirements issued by the National Telecommunications and Information Administration on June 6. The new rules shifted from a fiber-first model to a technology-neutral approach and required states to re-enter the broadband bidding process, which caused delays in funding.
"Extreme and radical changes at the federal policy level make debt and equity investors cautious about committing to future investments," Moline stated. “[O]ur investors are unable to provide capital to support the previously approved growth plans.”
ALLO’s investors include SDC Capital Partners and Nelnet.
In addition to the layoffs, the company has enacted other spending cuts. These include suspending non-essential travel through July 3, reducing monthly mobile phone reimbursements to $50 per month, and discontinuing free pay-TV service for employees in service areas.
“While we are in the final stages of securing a significant financing transaction, our current cash position and near-term cash flow needs require us to take immediate and disciplined action to reduce spending until we secure additional funding,” Moline said.
The company stated these cash constraints will continue throughout the summer.
Member discussion