Mobile virtual network operator Virgin Mobile USA is eliminating about 45 positions in its New Jersey and California offices, which represents approximately 10 percent of its workforce.

In a memo to employees yesterday, Virgin Mobile USA CEO Dan Schulman explained that the company had identified continued synergies associated with the transition of IT services to IBM and the acquisition of Helio. Another word for it: duplication.

"We have assessed the status of the company post-integration and have identified some remaining duplication of assignments," Mr. Schulman said in a written statement.

"Our intent is to expand our investment in both our prepaid and new postpaid business and, in order to do so profitably, we must continue to identify opportunities to reduce operating costs across all areas," he said.

"Virgin Mobile USA is well positioned to weather these tough times and build our business in 2009. Our value proposition and wide range of products and services are more relevant than ever in an environment where consumers are looking for value and flexibility."

Virgin Mobile USA also said that John Feehan, its current CFO who had previously announced intentions to leave the company this month, will continue in his role.

Virgin Mobile USA Inc., through its operating company Virgin Mobile USA L.P., offers more than 5 million customers Plans Without Annual Contracts and postpaid offerings through Helio By Virgin Mobile, with national coverage for both powered by the Sprint PCS network.

A recent article in this publication addresses whether the prepaid MVNO has a bright future addressing underserved demographics, or are the players in this space clinging to a flawed business model? (see story).

Virgin Mobile USA is launching mobile advertising campaigns on the Local Mobile search and directory service (see story).

Virgin Mobile USA claims that 90 percent of its own customers report satisfaction with its service.

The MVNO lets customers to earn free minutes in exchange for viewing advertising content online through the Sugar Mama program.

Virgin Mobile USA's full slate of handsets are available at approximately 40,000 retailers nationwide and online at http://www.virginmobileusa.com.

Top-up cards are also available at more than 140,000 locations.

Meanwhile, the focus of the company is on cutting costs in this slowing economy.

"As part of the overall transition underway related to IBM outsourcing and Helio acquisition, we have identified additional duplicative positions," said Jayne Wallace, spokeswoman for Virgin Mobile USA, Warren, NJ.

"We are always looking for cost-savings opportunities to ensure we have the maximum dollars to reinvest in the company," she said. "And we gave guidance for Q4 with a cautious eye toward the economy.

"Everyone is being affected."