ALLO Fiber Cutting Staff Fast to Fight Cash Burn
ALLO Fiber, a regional ISP in Nebraska, is trying to cut staff to cope with a cash burn problem ascribed to capital limitations from investors and delays in the BEAD program.
Fiber: The fiber bandwagon just hit a bump in the road. ALLO Fiber, a regional ISP in Nebraska, is trying to cut staff quickly to cope with a cash burn problem ascribed to capital limitations from investors and delays in the Broadband Equity, Access, and Deployment (BEAD) program. ALLO President and CEO Brad Moline reportedly sent a memo on June 20 telling staffers they had until June 27 to commit to the voluntary resignation program; those that did would need to leave on July 1, with severance varying based on tenure and with health benefits lasting through July. The offer was made to nearly all 1,600 employees.
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Moline’s memo, obtained by radio station KLIN in Lincoln, Neb., quoted him saying, “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.” Closely held ALLO, based in Imperial, Neb. and founded in 2003, is backed by SDC Capital Partners in New York and Nelnet (NYSE: NNI), a student loan servicing company, in Lincoln. (More after paywall.)
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