In what is the most obviously inevitable workforce reduction so far this year, LightSquared (news) is supposedly planning to cut 45% of its workforce. Following the FCC’s decision to stop the buildout of their wholesale LTE network due to GPS interference concerns, the company currently lacks a viable business model and hence the appearance of the axe isn’t going to surprise anyone.
LightSquared also recently failed to pay $56M to Inmarsat that it owed as part of the deal for that spectrum it can’t use. LightSquared says that is because there are additional items that the two must address before the payment is required, but it’s obvious that they are circling the wagons and keeping whatever cash they can in-house to improve their negotiating position.
LightSquared currently has about 330 employees, which suggests about 150 will be directly affected. Good luck to those at risk, and may the odds ever be in your favor.
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