Clearwire Corporation (NASDAQ:CLWR) Chairman Craig McCaw has stepped down from his position late last week. McCaw, 61, was one of the pioneers of mobile phone technology. Clearwire is struggling to build high-speed wireless 4G networks across the U.S. according to Bloomberg.
Clearwire has also struggled to raise enough funding to build and operate networks. This is forcing them to cut jobs and eliminate projects. The company said that they may run out of cash by mid-2011. The company will be laying off 15% of their employees and reduce the sales and marketing teams.
In 2008 Google, Sprint Nextel, Time Warner Cable, Comcast, Intel and several other investors had put in $3.2 billion into Clearwire for them to build a 4G wireless network. Some of the investors put in an additional $1.56 billion funding round last year.
Another rumor that is floating around about the company is that Sprint may invest an additional $200 million to assume Clearwire’s debt. This will allow Sprint to maintain a 50% ownership in Clearwire. Clearwire provides WiMax infrastructure that powers the Sprint EVO and the Epic devices.