Thursday, November 4, 2010

Clearwire Chops 15 Percent, Freezes Market Expansion Efforts

Kirkland-based Clearwire said Thursday afternoon that it has cut 15 percent of its staff, in a move to conserve cash. The cuts--revealed as part of Clearwire's quarterly reports--said the move comes because it has not yet secured future funding. The company said it is in discussion with its major shareholders about strategic transactions, additional debt or equity financings and/or asset sales, and has implemented cash conservation measures to reduce its costs. In addition to the employee cuts, the firm said it would make a "substantial reduction" in sales and marketing spending, suspension of further retail market launches, and delay of introduction of its own smartphones. The moves also include a freeze on zoning and permitting activities of the company at new sites.