Orbcomm
Lays Off
20% Of Staff
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Earlier
SPACEandTECH Flash! reported that Orbcomm had suspended
operations. Orbcomm has commented since, that they
remain in operation.
Orbital
Sciences Orbcomm business unit has let
go 112 employees. (The Orbcomm website states the business
unit employs 520 people.) “Orbital [Sciences] and its
space-systems group have suspended all work on Orbcomm’s
satellites.  Orbcomm
is likely to overcome problems with additional capital coming in,
and we are still committed to Orbcomm,” stated Orbital Sciences
spokesperson Barry Beneski. He indicated the company will resume
operations when it receives additional cash. Orbcomm has an
operating network of 36 satellites.
In a June 16
press release Orbcomm announced that it had hired Bear Stearns
"to assist in the search for strategic partners and investors
in Orbcomm." The press release states, "As we previously
have disclosed, Orbcomm has substantial funding requirements
before it is expected to be cash-flow positive. In light of this
continuing funding need, we have decided to search aggressively
for additional investors. In
addition to the search for strategic investors, Orbcomm is
evaluating other strategic and financing alternatives to
strengthen Orbcomm’s capital
structure and market position."
Orbcomm’s
problem involves its majority shareholder Teleglobe. Teleglobe
missed an US$8 million payment to  Orbcomm
in May, which likely triggered Orbcomm’s actions. Bell Canada
Enterprises (BCE) officials are believed to be questioning whether
they want to hold onto Teleglobe’s 66-percent stake in Orbcomm.  BCE
believes it may have paid too much when acquiring Teleglobe.
Teleglobe’s missed payment last month may have been a move by
BCE to begin disassociating itself from Orbcomm. Officials at BCE
and Teleglobe were not immediately available for comment.
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