ALLO Communications has launched a voluntary resignation program for eligible employees, citing ongoing financial constraints and stalled growth plans, according to an internal memo obtained by KLIN News.
The memo, sent company-wide by ALLO President Brad Moline on June 20, says recent capital limitations from investors and broader challenges in the fiber industry—particularly delays with the federal Broadband Equity, Access, and Deployment (BEAD) program—have forced the company to cut expenses and scale back its network expansion.
“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,” Moline wrote.
The voluntary resignation program is open to most ALLO employees not currently under performance-related corrective actions. Employees interested must notify leadership by noon on Friday, June 27. Their final day will be July 1, and they will receive severance of either three weeks’ pay or one week per year of service—whichever is greater. Health insurance will continue through the end of July.
The memo emphasizes that participation is optional and that rehires will be permitted.
It remains unclear how many employees ALLO hopes to offload or whether further cost-cutting measures are imminent. Moline acknowledged that “there may be a need for additional actions as we look to reduce our cash spend.”
Founded in Nebraska, ALLO has built out fiber internet infrastructure in several communities across the state and beyond. The company’s expansion has slowed amid industry-wide uncertainty tied to BEAD funding delays and tighter private capital markets.
KLIN News reached out to ALLO for comment, including clarification on how many employees the company hopes or expects will participate in the program. ALLO had not responded as of Friday evening (7:30 p.m.), June 20.
This is a developing story.