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To: Timothy R. Tierney who wrote (6298)	6/14/1999 3:47:00 PM
From: Slick	Respond to of 10852

Here is some more "good news" (can G* be too far behind?): Iridium Lays Off 15 Percent Of Workers, Shares Off NEW YORK (Reuters) - Satellite phone company Iridium World Communications Ltd (Nasdaq:IRID - news). has laid off 15 percent of its 550 workers, a company spokeswoman said Monday, in the latest sign of the company's difficulties. Iridium stock fell to a year's low with the news to just above $5 a share, making it among the biggest Nasdaq losers, amid views the company's high-priced and unwieldy telephone handsets have not caught on as well as Iridium had hoped. Michelle Lyle, an Iridium spokeswoman, said the layoffs were ''part of the reorganizing and restructuring to meet the challenges... that we are facing.'' She said the layoffs occurred across the Washington-based company's workforce. The company -- 18 percent owned by Motorola Inc. (NYSE:MOT - news) -- has been grappling with slow subscriber growth, technical troubles and debt woes. Under pressure from lenders to increase revenues and subscribers, Iridium said in May of this year that it was aiming for a restructuring rather than bankruptcy. Iridium is refocusing on the ''industrial market'' and will cut the price of its services and handsets, Lyle said. Details of the marketing and pricing strategy will come in a few days. Iridium shares were down nearly 88 cents at $5.12 in heavier-than-normal trade, just off an intraday low of $4.97. The Wall Street Journal reported the layoffs Monday. Shares in Iridium, which runs a network of hand-held satellite phones, have plunged from a record close of almost 71 in May 1998. The Washington-based company has struggled to meet its financial and subscriber targets required as part of its $800 million credit facility. Iridium's lenders have given the company until June 30 to increase its subscriber base to 27,000. The company had 10,300 at the end of March. Quoting people familiar with the matter, The Wall Street Journal said Iridium had only about 15,000 users. Lyle said she was not aware of the figure.