Skip to main content

Virgin Mobile USA sacks 10% of its staff

Virgin Mobile not just slimming down handsets
Virgin Mobile not just slimming down handsets

Virgin Mobile USA has announced it will be trimming its staff by around 10 per cent over the next year.

The recent acquisition of Helio, the handset manufacturer, has led to the inevitable cull, with 45 of the 400 strong workforce being let go.

Virgin Mobile has confirmed that the buying of Helio, as well as the move to an IBM-contracted IT infrastructure is the reason for the cull.

The losses will come mostly in the New Jersey and California offices, and this gives another indication that the company is preparing for the worst worldwide in the fiscal year 2009, with the UK among Virgin Mobile's key market areas.

Decent results

However, the company has posted some decent global financial results recently, including an eight per cent subscriber increase in year on year terms in the US.

Virgin Mobile USA Chief Executive Officer­ Dan Schulman said: "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."