Starry has already reduced its workforce by approximately 50% and withdrawn from the FCC’s RDOF program
U.S. fixed wireless technology developer and internet service provider Starry has hired PJT Partners to advise the company in several strategic areas including mergers and acquisitions, capital raising and balance sheet solutions. The move is part of Starry’s larger cost-cutting efforts that have already seen the company reduce its workforce by approximately 50% and enact a hiring freeze, as well as withdraw its participation in the Federal Communications Commission’s (FCC) Rural Digital Opportunity Fund (RDOF) program.
“This is an extremely difficult economic climate and capital environment, and at present we don’t have the capital to fund our rapid growth,” Starry’s Chief Executive Officer Chet Kanojia said when sharing the company’s third quarter results. “Because of that, we’re focusing our energies on our core business: serving multi-tenant buildings in our existing dense urban markets.”
While Starry actually had a strong quarter — increasing the number of homes serviceable by 18% to 5.96 million and penetration by 44 bps year-over-year to 1.53% — the company still felt that “aggressive measures … were needed to curtail [its] cash burn while [it] pursue strategic options,” according to Kanojia.
Kanojia continued: “Last week, we made the tough decision to withdraw from the FCC’s RDOF program. While participation in this important program fit within our strategic vision in 2020, changing capital needs, changing capital environments, and continued success in the urban multi-tenant market forced a decision to take a step back and focus our energies and capital on executing on our core business plan. And this week we made the very difficult decision to let go approximately half of our workforce – many of our colleagues who helped build Starry.”
He added that while these decisions have been tough, Starry “remains open for business … making the difficult calls now and taking steps that will allow [the company] to be laser-focused on financing the business over the long-term and continue serving our markets.”
Headquartered in Boston, Starry currently offers services in Boston, New York City, Los Angeles, Washington, DC, Denver and Columbus, OH.
