Things around the LightSquared offices have to be looking dim at this point. While the managers of the company continue to fight to get their proposed wireless 4G network approved, denials keep streaming in. LightSquared has announced that is having take rather drastic measures to save money and attempt to stay afloat. The company has announced that it is shedding 45% of its 330 person workforce.
The company called the layoffs a “prudent and necessary” measure to save money. This week LightSquared missed a payment on a $56 million loan to a British company that operates satellites called in Inmarsat. Last week the FCC revoked permission granted LightSquared to move ahead with wireless network plans. The problem with LightSquared’s plan is that the FCC found the service interfered with a significant amount of GPS devices on the market today.
Philip Falcone is backing LightSquared with a huge chunk of the assets from the hedge fund he manages. Reuters reports that Falcone has invested more than 60% of the $4 billion in assets Harbinger Capital Partners owns. If LightSquared completely fails, things won’t be good for Falcone.