Virgin Mobile USA Cuts 10% of its Workforce

Virgin Mobile USA has announced that it is cutting around 45 jobs - representing some 10% of its workforce, in its New Jersey and California offices. In a memo to employees, Virgin Mobile USA Chief Executive Officer Dan Schulman explained that the Company had identified continued synergies associated with the transition of IT services to IBM and the acquisition of Helio.

In August, Virgin Mobile USA completed its acquisition of rival MVNO, Helio and the company has now unveiled its new branding message to highlight the acquisition: "Helio By Virgin Mobile: Plan To Have It All." Helio was a joint venture between SK Telecom and EarthLink - and sold to Virgin Mobile USA for US$39 million in an all-shares deal.

"We have assessed the status of the Company post-integration and have identified some remaining duplication of assignments. Our intent is to expand our investment in both our prepaid and new postpaid business and, in order to do so profitably, we must continue to identify opportunities to reduce operating costs across all areas."

He added, "Virgin Mobile USA is well positioned to weather these tough times and build our business in 2009. Our value proposition and wide range of products and services are more relevant than ever in an environment where consumers are looking for value and flexibility."

Virgin Mobile USA also said on Friday that John Feehan, its current CFO who had previously announced intentions to leave the Company this month, will be continuing in his role.

Posted to the site on 17th November 2008