Amazon has entered discussions to acquire satellite communications provider Globalstar, aiming to expand its space-based connectivity footprint. News of these talks propelled Globalstar shares sharply higher as investors anticipate strengthened competition in low-Earth orbit systems.

Acquiring Globalstar would bolster Amazon’s Project Kuiper initiative by adding spectrum rights and satellite capacity needed to compete with SpaceX’s Starlink. This aligns with Amazon’s broader strategy to provide global broadband services and diversify revenue streams beyond e-commerce.

Amazon joined Oracle, Morgan Stanley and other firms in announcing workforce reductions as part of ongoing cost controls. This comes as weekly US unemployment filings decreased by 9,000 to 202,000 for the week ending March 28, signaling a still-tight labor market despite selective layoffs.