Reports: Helio Cuts Staff
8/31/07 – GigaOm is reporting that Helio, the Westwood-based mobile virtual network operator, or MVNO, is letting 100 employees go. While not confirming the exact number, a Helio spokesman says that some employees are being let go, primarily in the company's field sales organization.
Amp’d Mobile’s well-documented bankruptcy filing and shutdown have highlighted the numerous questions about the viability of the MVNO model, where the company does not own wireless spectrum, but leases it and resells the basic phone service from mobile phone companies. The cuts also come just days after primary investor EarthLink announced it would layoff 900 employees—about half of its total staff.
But Helio's Rick Heineman emphasizes that EarthLink and Helio are two separate businesses and the cuts at each are not correlated. Heineman says the eliminated positions are part of Helio's effort to "responsibly manage our business" while it grows and matures, a message clearly aimed at skeptics citing Amp'd's failure as proof of the MVNO model's shakiness.
Helio has garnered some major attention and positive reviews for its Ocean and Fin devices. The company, founded in 2005, is backed by EarthLink and South Korea’s SK Telecom.
Helio – www.helio.com
