[Satellite TODAY 02-23-12] LightSquared is preparing to cut approximately 45 percent of its 330-employee workforce to settle the financial issues associated with the regulatory block of its 4G LTE network service, according to a Reuters report published Feb. 21.
In the report, LightSquared said the layoffs were a, “prudent and necessary cost-savings measure to ensure the long-term success of the company and that the company is, “not considering bankruptcy.”
LightSquared’s satellite capacity partner Inmarsat recently announced that it did not receive a $56 million payment due to the operator as part of the first phase of its contract agreement and that the debt has moved into default.
Last week, the U.S. Federal Communications Commission (FCC) withdrew permission for LightSquared to build its LTE network after finding that the company was unable to solve its alleged interference issues with GPS signals. LightSquared claims interference testing showed bias in favor of the GPS industry’s claims.
Receive the latest satellite industry news right to your inbox