Updated: Helio Cuts 100 Jobs

[qi:004] Update: Helio has cut a 100 jobs out its total workforce of over 700 employees, in an effort to streamline its operations and refocus its field sales team towards direct sales, a company spokesperson told us this afternoon. The vast majority of these changes came in field sales. Few changes were made back at Helio headquarters.

The company also plans to increase the company owned kiosks from 30 to 50. Helio spokesperson claims that the company had its best month in July 2007, and is currently on track to do $100 million in revenues. The company plans to keep introducing new devices through 2008. Helio’s “reallocation of resources” (their words not mine) comes close on the heels of a major restructuring at Earthlink.

My original post is after the fold

Helio, the mega-mobile virtual network operator backed by Korean telecom giant SK Telecom (SKM) and EarthLink (ELNK), is rumored to be contemplating job cuts. Our sources indicate that it could happen sometime this week, and there have been some hush-hush meetings today, but it isn’t clear what’s being talked about. It is also not clear at this stage how many jobs are going to be slashed.

EarthLink, of course, just announced 900 job cuts in an effort to reduce costs; I suspect the rumored Helio cuts are a ripple effect of EarthLink’s move. Despite having raised more than $640 million and boasting both cool devices and a reliable service, the MVNO hasn’t been a spectacular success. The company has focused on the top end of the younger, hipper demographic, with the tag line: “Don’t call it a phone.”

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