Embattled wireless company LightSquared is reportedly gearing up to fire nearly half of its 330 employees as its financial difficulties mount and a plan to launch a new LTE network in the U.S. appears to have hit an insurmountable regulatory roadblock.
LightSquared reportedly told Reuters Tuesday that it plans to lay off 45 percent of its workforce in a "prudent and necessary cost savings measure to ensure the long-term success of the company."
Philip Falcone, the hedge fund manager who is behind the company, has insisted that LightSquared won't shut down despite a series of disastrous developments. Reuters cited an unnamed source as saying LightSquared "is not considering bankruptcy."
"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 published by the news agency.
The company this week was unable to deliver $56 million owed to Inmarsat, LightSquared's British satellite partner. Money problems underscore how rapidly the company's fortunes have taken a precipitous turn in recent weeks as government agencies have moved to put the kibosh on LightSquared's LTE plans due to the technology's interference with existing Global Positioning Systems used by the military and airlines.