Struggling Boston Internet-service company Starry is cutting 100 workers, or about one-quarter of its remaining workforce. It’s the latest local tech firm to announce layoffs as the industry adjusts to a number of economic challenges.
“The decision was based on cost-reduction initiatives intended to reduce operating expenses and allow the company to focus on serving its existing core markets and customers,” Starry said in a securities filing on Wednesday.
Last week, the company said an agreement to raise as much as $100 million in a deal with Cantor Fitzgerald’s CF Principal Investments LLC had fallen through.
The layoff follows a massive 50 percent employee cut in October, as Starry has failed to raise enough money to continue expanding its wireless Internet service. Starry, which builds its own routers and other wireless gear, offers service in a handful of cities including Boston, New York, and Los Angeles, serving a total of about 91,000 customers as of the end of September.
Starry said the layoffs would be completed by the end of June and the company would save $12 million in cash expenses due to the cuts.
Starry went public almost a year ago by merging with a special purpose acquisition company but raised less than half of the planned amount of backing. Its stock price has since cratered by 99 percent — trading at only 4 cents a share on Wednesday — and the New York Stock Exchange moved to de-list its stock.