Yesterday, Globalstar hit the company’s milestone in exceeding 100 Louisiana jobs with the company’s headquarter relocation from Silicon Valley to Covington. One year after announcing the move to Louisiana, the company now employs 114 direct jobs. Globalstar, which recently raised $38 Million and invested in travel time forecaster TrafficCast International, is on track to reach 185 jobs at its Covington headquarters by the end of 2011 and 593 jobs with an average annual salary of $70,000, plus benefits, by 2020. Louisiana Economic Development estimates the 593 new direct jobs will result in the creation of approximately 800 new indirect jobs, for a total of more than 1,300 new jobs in Louisiana.
“As we are launching our new satellite constellation, our move to Louisiana was just another step toward rebuilding Globalstar into the world’s pre-eminent provider of high-quality commercial and consumer mobile satellite voice and data services,” said Jay Monroe, executive chairman and interim CEO of Globalstar Inc. “Relocating to Covington helped reduce our operating costs as we executed our next-generation strategic initiatives. We also benefited greatly from our move thanks to LED’s progressive digital interactive media incentives and tax credits. We considered relocating our headquarters to numerous states, but the overall advantages of moving here were simply too compelling to ignore. Once again I would like to thank Gov. Bobby Jindal, (LED Secretary) Stephen Moret, their respective staffs and all levels of local government involved for their enthusiastic support and responsiveness in helping bring Globalstar to the Gulf Region.”
Globalstar expects to reach a total of 593 jobs with an average salary of more than $70,000 by 2020. Louisiana provided an incentive package that included $4.36 million in relocation assistance over a two-year period and $3.69 million in lease payment support over a 10-year period to secure the headquarters relocation project. All of those funds are performance-based and require Globalstar to meet payroll targets set out in a 2010 agreement with the state. Globalstar is located in the former Wink Engineering building in Covington.
As it develops software critical to the deployment of its mobile satellite communications products, Globalstar is expected to make use of Louisiana’s Digital Interactive Media and Software Tax Credit, worth up to 25 percent of certified development expenditures and up to 35 percent when applied to Louisiana-based payroll expenditures.
“Globalstar is a true reflection of the New Louisiana economy, evolving and diversifying with technology companies that record sales all over the globe and that generate new wealth for Louisiana and high-paying career opportunities for our people,” said Moret. “We’re pleased that Globalstar, along with many other expanding and relocating companies, recognizes the unique opportunity that investing in Louisiana and its talented workforce represents.”