MacDonald, Dettwiler and Associates Ltd. (TSX: MDA) suggests it may have to lay off workers, thanks to a lack of funding in the federal budget for a critical program.
In a tersely worded press release Friday, the Richmond-based company stated the federal budget did not include the funds required to continue the RADARSAT Constellation Mission (RCM).
The RADARSAT Constellation is a fleet of three remote-sensing satellites to be used for ship navigation and monitoring the Earth for purposes such as disaster relief. As part of the RCM, the satellites would provide complete daily coverage of Canada’s land and oceans for ship navigation and terrestrial observation.
Last May, MDA announced it had signed agreements with the Canadian Space Agency (CSA) for the design phase of the RCM.
The CSA had committed a total investment of $497 million over five years, with the satellite launches planned for 2014 and 2015, according to the CSA’s website. But it appears the money needed to compete the program has been cut in the federal budget.
“Given the level of uncertainty, the company is accelerating its steps to restructure its workforce related to this event,” MDA stated in the release.
