Virgin Mobile to cut 45 jobs, 10 pct of work force

WARREN, N.J.—Virgin Mobile USA Inc. said Monday that it's slashing about 45 jobs in California and New Jersey, or about 10 percent of its work force, to reduce operating costs.

The provider of prepaid cell phones said the job cuts reflect its acquisition of multimedia cell phone Helio, announced in June, and outsourcing of its information technology functions to IBM Corp.

Virgin Mobile USA Chief Executive Dan Schulman said the company is "well positioned to weather these tough times and build our business in 2009."

He said the company's prepaid cell phones are attractive to cost-conscious consumers.

Virgin Mobile USA also said John Feehan, its current chief financial officer, has decided to stay in his position. He was slated to leave the company this month.

Shares of Virgin Mobile USA fell by 11 cents, or 10.6 percent, to 93 cents in afternoon trading.