Virgin shuts Walnut Creek office; 200 jobs gone

0 Comments | Oakland Tribune, Dec 15, 2008 | by George Avalos

WALNUT CREEK -- Virgin Mobile USA has decided to shut its offices here in a move that will eliminate nearly 200 jobs once the cutbacks are complete by early 2009, the wireless services provider said Monday.

For the most part, the devastating economic slump nationwide and globally did not unleash these job reductions at Virgin Mobile.

Rather, they result from a decision to outsource some I.T. (information technology) services to IBM Corp. and Virgin's purchase of Helio, a rival wireless carrier.

In recent months, Virgin has been trimming jobs at its Walnut Creek operation, located at 2185 N. California Blvd. The office is scheduled to close sometime during the first three months of 2009. All told, 192 jobs will be lost in Walnut Creek, a filing with state labor officials shows.

Virgin seeks to add new wireless services and offerings, Dan Schulman, Virgin Mobile USA's chief executive officer, wrote in a memo in late November.

"To do so profitably, we must continue to identify opportunities to reduce operating costs across all areas," Schulman wrote.

The Helio merger allows Virgin Mobile to offer new wireless technologies. It also means more demands on its I.T. operation. That's why Virgin turned to IBM.

"Even with our terrific I.T. team in place, our needs are stretching beyond what the current system could provide," said Jayne Wallace, a Virgin Mobile USA spokesperson.

About 45 Virgin Mobile I.T. workers in Walnut Creek are landing new jobs with IBM via the outsourcing deal. Some will work out of an IBM office in San Ramon, Wallace said. Others will transfer to locations outside of the Bay Area.

"Virgin Mobile USA is well positioned to weather these tough times and build our business in 2009," Wallace said.

Reach George Avalos at 925-977-8477 or gavalos@bayareanewsgroup.com.