Helio cuts 5% of workforce, updates plan offerings

Mobile virtual network operator Helio L.L.C. cut about 5% of its workforce, mostly in its field sales team, the company confirmed following media reports of the move.
The cuts amount to around 100 positions, and Helio spokesman Rick Heineman described them as being part of the company’s effort to “grow the business responsibly” as Helio transitions from a young start-up to a more mature company.
Helio parent Earthlink Inc. announced earlier this week it would cut essentially half its workforce, or about 900 positions. Heineman emphasized that the two companies are separate with no overlapping operations, and that the cuts at Earthlink are unrelated to those at the MVNO.
Heineman said that July was a “record month” for Helio in terms of overall performance and subscriber growth, and that August has outpaced it. He said that, with Helio on a growth path, the company took the opportunity to examine its cost structure in order to see “how we can streamline and responsibly grow the business, and not run into the issues that other companies have.”
Helio rival Amp’d Mobile Inc. recently shut down its service following a cash crunch and subsequent bankruptcy filing.
Helio’s Heineman said that, as the MVNO got off the ground, it used its far-flung field sales team to establish itself and educate retailers, especially in the indirect channel. Now, however, the company has a full year of sales data and can concentrate its efforts more efficiently in key markets with fewer sales staff.
The job cuts also included some positions at Helio’s headquarters related to the initial buildout of systems such as billing and content delivery, which are no longer required as the company introduces new products and services, Heineman said.
Also this week, Helio introduced a new mix-and-match family plan option on its Web site. The MVNO had previously only offered family plans as part of an add-a-line feature for its a la carte plans, not the standard all-in plans that are the focus of its offering. Now, customers can add others to their plans and the secondary lines can be either a la carte or all-in memberships.
Heineman said that the change was in response to customer demand, and that advertising for the new plans would begin next week.