Longmont-based DigitalGlobe is cutting 155 jobs — 64 of them in Colorado — as part of an overall strategy shift, the company said Wednesday.
“The realignment is a continuation of our ongoing efforts to focus internal resources with our business segments and focus areas,” said DigitalGlobe spokeswoman Nancy Coleman. “These efforts are imperative to properly meet the needs and expectations of our customers and shareowners and to ensure DigitalGlobe maintains its competitive advantage.”
Coleman declined to elaborate on the strategic goals and would not offer specifics other than to say the layoffs affected “multiple sites in multiple states.”
The 100 affected company employees and 55 contractors were notified Feb. 26 — the same day that the company released better-than-expected fourth-quarter 2014 and year-end financial results.
Coleman said the timing of the layoffs is “not associated with the most recent earnings call or any other singular event.”
“These actions are about aligning resources for future growth and performance,” she said.
On the Feb. 26 earnings call, DigitalGlobe CEO Jeffrey Tarr called 2014 “a milestone year for DigitalGlobe” and touted the company’s improving returns and free cash flow.
DigitalGlobe’s 2014 year-end revenue increased 6.8 percent, to $654.6 million, and net income hit $18.5 million.
For fourth quarter 2014, the company reported a 9.4 percent increase in revenue to $185.7 million, well outpacing analysts’ expectations of nearly $180.3 million.
Net income for the quarter was $10.7 million, or 14 cents per share. Analysts were expecting 6 cents per share.
As a result, shares in DigitalGlobe jumped 16.87 percent on Feb. 27, closing at $33.25. The shares closed Wednesday at $34.94.
The company said it intends to replace some of the jobs, but it did not offer details.
“We expect to hire back half that number with different skill sets almost immediately and then continue to grow our head count in line with our planned growth,” Coleman said.
DigitalGlobe is one of the world’s leading providers of high-resolution Earth-satellite imagery. Last year, DigitalGlobe launched WorldView-3, the most advanced commercial imagery satellite ever made.
Images from that satellite were made available for sale last week, opening a new revenue stream for the company.
DigitalGlobe did not formally announce the layoffs.
Laura Keeney: 303-954-1337, lkeeney@denverpost.com or twitter.com/LauraKeeney
