Helio squashes rumors of massive layoffs

After Internet service provider EarthLink announced a restructuring plan that will slash 900 jobs, rumors began to circulate that Helio--the financially troubled MVNO launched by EarthLink in conjunction with South Korean mobile operator SK Telecom--was in line for massive job cuts as well. In an interview with Wired, Helio spokesperson Rick Heineman said the MVNO will in fact be forced to trim roughly 100 jobs, or about 15 percent of its workforce.

"I'd heard from some source floating out there that we had cut something like 900 jobs. What's funny is that we're just now leaving the startup phase--we don't even have 900 jobs to cut," Heineman stated. "Our direct sales channel isn't changing--it's growing in fact. But as we transition out of startup mode, we're learning that we don't need as many people on the street with our sales and distribution teams." As for the EarthLink layoffs: "They're investors," Heineman said. "Their operations don't impact us."

For more on the Helio rumors:
- read this Wired article [1]

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