Virgin Mobile USA may be preparing to lay-off a significant proportion of its staff following poor financial results - but denied claims of up to 300 job cuts. Company spokeswoman Jayne Wallace told the Washington Post that the company had around 400 staff, so media reports of up to 300 job cuts were way off the mark. The company may look at up to 100 job cuts, mainly due to decisions to outsource some of its services.
Wallace said "Cost savings is not the only reason companies look to outsource. One of the reasons could be to improve technological abilities. Other options include looking at technology partners. Our employees were told that this was being looked into. We might not lay off anyone. It's in fact inappropriate to place any number on people that might be impacted since we have not made any decisions about anything at this point. There's simply no way to know any of these details until decisions are made about what if, what, who."
In a stock market filing earlier this month, the company said that it is considering setting up a call center later this year in Nicaragua.
Virgin Mobile USA's share price has slumped by over 85% since the company was floated on the stock exchange last year. The firm was also embroiled in a scandal over miss-reporting of its financials prior to the floatation. Virgin Mobile USA is a joint venture between the Virgin Group and Sprint Nextel, and is not financially linked to any other Virgin Mobile network elsewhere in the world.
On the web: Washington Post
Posted to the site on 18th April 2008
Posted to: www.cellular-news.com/story/30622.php