Clearwire announces layoffs and cost cuts as it looks for funding

sprint and other investors give clearwire 1 5b in financing logo

The claims of T-Mobile notwithstanding, Clearwire’s WiMax network represents the only operational 4G mobile network in the United States, and the company just lit up the New York City area and plans to bring important markets like San Francisco, Washington D.C., and Los Angeles online by the end of the year. So the company ought to be rolling in money, right? Not so. Although Clearwire says it saw record subscriber and revenue growth in the third quarter of 2010, the company is struggling to find the money to continue its rollout of WiMax services. Until Clearwire can secure that money, it’s taking some “cash conservation steps,” including laying off some 15 percent of its workforce.

“While we continue to exceed our subscriber and operational goals, we have not yet secured future funding and prudence dictates that we take appropriate cash conservation steps to reduce costs,” said Clearwire CEO Bill Morrow, in a statement. “We remain cautiously optimistic that we will resolve our short-term funding needs in the near future.”

If Clearwire continues on its present court, the company may run out of cash my the middle of 2011. The layoffs and new cost reduction measures should save Clearwire between $100 and $200 million in the first half of next year, but Clearwire indicates that won’t be enough to cover its expenses. Morrow says almost all options are on the table for securing future funding, including debt and equity deals—which would have the company sell off portions of itself in exchange for capital—as well as a sale of excess spectrum or other assets. Clearwire hasn’t said how much cash it needs, but reports have the company mulling potential spectrum license sales to the likes of AT&T and Deutsche Telekom (T-Mobile), which could net up to $5 billion.

Mobile operator Sprint is Clearwire’s majority shareholder, with a 54 percent stake in the company. Clearwire acquired over $1.5 billion from Sprint and other investors last year; since then, investors like Comcast have indicated that they are unlikely to continue to pour money into Clearwire.


Exclusive: Take a look at what a next-generation 5G phone will look like

With 5G phones debuting at MWC in mere days, there is discussion about whether they will be clunky bricks that die after a few hours? A reference design from Qualcomm offerrs a glimpse of the future: This is what 5G phones will look like.

Verizon wants you to lobby the government for 5G deployment

Verizon is in the midst of a massive 5G rollout. In addition to fixed 5G service, it will also begin deploying mobile 5G in the coming months. Here's everything you need to know about Verizon's 5G network and when it will be in your town.

Sprint’s 5G rollout: Everything you need to know about it

Sprint is building its next-gen 5G network in preparation for a 2019 rollout, but it's taking a decidedly different approach than some of its competitors, including Verizon and AT&T. Here's everything you need to know.

T-Mobile says Sprint merger will boost 5G speeds by up to 6 times

2019 will be a huge year for T-Mobile. Not only is a merger with Sprint likely, but T-Mobile is also in the midst of building out its next-generation mobile service. Here's everything you need to know about the T-Mobile 5G rollout.

Need speed? Qualcomm unveils the Snapdragon X55, the world’s fastest 5G modem

Qualcomm is preparing for an even faster future: The silicon giant just unveiled a second generation 5G modem for smartphones, promising blistering download speeds as high as 7Gbps.

Barbie’s Corvette ain’t got nothing on Sphero’s fully programmable robot car

Sphero is known for devices like the Sphero Bolt and BB-8 Star Wars toy, but now the company is back with another addition to its lineup -- the Sphero RVR. The RVR is a fully programmable robot car that can be expanding with different…
Product Review

Fascinating Finney phone is crypto in a nutshell: Exciting, but also terrifying

The Sirin Labs Finney phone is to cryptocurrency what the iPhone is to Apple Pay. It facilitates the payment, processing, and exchanging of cryptocurrencies on a smartphone, and surprisingly does it in a user-friendly way.
Home Theater

Accidentally aired Samsung ad shows Galaxy S10, Galaxy Buds a day before launch

One day before the launch event that is widely expected to contain both the new Galaxy S10 smartphone and the Galaxy Buds fully wireless earbuds, an accidentally aired Samsung TV ad from Norway confirms both products.

The name of Samsung's folding phone may have been revealed a day early

Samsung has been showcasing bendable display tech for a few years and now a folding smartphone might finally arrive. The Galaxy X, or perhaps the Galaxy Fold, may be the company's first example. Here's everything we know about it.

The Razer Phone 2 is getting Android 9.0 Pie starting this month

Android 9.0 Pie has been released. But is your phone getting Android 9.0 Pie, and if so, when? We've done the hard work and asked every device manufacturer to see when their devices would be getting the update.

Apple brings back the iPhone SE with a $100 clearance discount included

Apple is offering the iPhone SE on their online clearance store once again. With discounts of $100, you can get a brand new unlocked iPhone SE for as little as $249. This offer is only available while supplies last.

Apple stomps on one FaceTime bug, only to have another one appear

Having fixed a FaceTime bug that let users eavesdrop on calls, another issue with Apple's video chat app appears to have surfaced. It concerns adding people to group calls, though there is a workaround.

Vivo V15 Pro’s trick camera rises to the challenge of making us smile

Vivo knows it's onto a winner with the cool motorized camera seen on the Vivo Nex S, and has now incorporated a newer version of the technology into the V15 Pro. We've tried it out.

To avoid the notch, Vivo’s new smartphone has a secret selfie camera

Vivo has already experimented with a motorized selfie camera and now it's bringing the cool technology to a more affordable device -- the Vivo V15 Pro. Here's everything you need to know about the phone.