LightSquared will cut 45 percent of its workforce as it seeks to conserve cash in the wake of regulators' decision to nix the company's plan to launch a wholesale LTE network, according to a Reuters report.
The report, which cited a statement from the company, said that 45 percent of the company's 330-person workforce will be cut. The company said the decision is a "prudent and necessary cost savings measure to ensure the long-term success of the company."
LightSquared executives said in January that the company has enough cash to last several quarters. A LightSquared spokesman did not immediately have a comment on what kinds of positions will be affected or how the job cuts will alter LightSquared's operations.
Speculation about the company's fate has mounted since regulators concluded last week that concerns over interference between the company's proposed network and GPS receivers could not be mitigated. Based on testing by the National Telecommunications and Information Administration, the FCC said it would not allow LightSquared to build its planned LTE network.
Earlier this week LightSquared did not make a $56 million payment to satellite operator Inmarsat, which then initiated a notice of default against LightSquared. The move is a further indication of LightSquared's belt-tightening.
"The company remains committed to managing its core business operations, serving the more than 300,000 government, public safety and commercial users of its satellite service," LightSquared said in a statement. According to the Reuters report, which cited an unnamed source close the company, LightSquared is not considering filing for bankruptcy protection.
LightSquared spent $2.5 million on lobbying in 2011, according to Reuters, nearly 10 times what it spent in 2010. The company was fighting vigorously against a group called the Coalition to Save Our GPS. The coalition's members include GPS makers Garmin and Trimble, as well as the likes of Caterpillar and John Deere & Co.
- see this Reuters article
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