Doing business in the mobile satellite sector continues to be a challenging feat. The latest low-Earth-orbit (LEO) satellite system to face a cash squeeze is Orbcomm Global L.P. [ORB], the satellite-based, global messaging service, which cut 112 jobs and slowed down the construction of new satellites.

Orbcomm needed to conserve its cash and focus on revenue-generating activities, such as selling, marketing and installing its messaging terminals, company officials said.

The 112 jobs, roughly 20 percent of Orbcomm’s 500-employee workforce, consist of 72 employees and 40 contractors. The company operates a constellation of 35 satellites and still plans to boost the number to 48, although the new satellites will be added more slowly than previously scheduled.

Orbcomm’s decision to trim its staff and suspend satellite manufactuing operations follows a June 16 announcement that the company hired New York-based investment banker Bear Sterns to find new backers and partners to join exisitng owners, Teleglobe Inc. [TGO] and Orbital Sciences Corp. [ORB].

Marc Crossman, satellite analyst with J.P. Morgan said, “It is unclear if Teleglobe plans to be the sole backer of Orbcomm unitl csh flow breaks even. [Orbcomm officials] don’t have enough funds to do everything they want to do.”