VMU cuts 10% of workforce, keeps CFO

Virgin Mobile USA Inc. reported plans to shed 10% of its workforce, announcing it will eliminate 45 positions in its New Jersey and California offices. The cuts comes on the heels of the MVNO’s mixed third quarter results, in which the company posted a profit, but lost customers.
In the memo to employees, Virgin Mobile USA CEO Dan Schulman said the cutbacks were due to a transition of I.T. services to IBM and the acquisition of Helio L.L.C.
“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,” Schulman said.
Schulman 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 reported that its CFO John Feehan, who was thought to be leaving, has decided to continue his role at the company.