Job Cuts at BCGI Following Contract Loss

Boston Communications Group, a provider of solutions to mobile operators and MVNOs, has announced that it will be decreasing its workforce by nearly a third (93 staff) after the company's contract with Sprint Nextel's Boost Mobile service was adjusted from RTB and Session Control to Session Control only.

Most of the employees affected by the reduction are located at the Company's headquarters in Bedford, Massachusetts and work across all areas of the organization. Implementation of the reductions will begin immediately and will be completed in the next several weeks.

The Company estimates that severance costs related to the reduction in workforce will result in a one-time charge of approximately $2 million in the second quarter of fiscal 2007.

"This was a very difficult decision," said Paul Tobin, the Company's acting president and chief executive officer, "but it was an essential one given our current business environment. We believe that a new streamlined operating structure will allow us to more efficiently meet the needs of our current customers and also explore other promising market opportunities."

The company made a sizable payment last year to settle a patent lawsuit and lost two senior directors following a stock options backdating investigation.

Correction:The contract was reduced from RTB and Session Control to Session Control only. An earlier edition said the whole contract was lost."

Posted to the site on 11th April 2007