Boingo thins ranks as part of realignment - Mobile World Live

Boingo thins ranks as part of realignment

14 DEC 2019

Boingo Wireless slashed 16 per cent of its workforce as part of a plan to move away from legacy business lines and reallocate resources to operator services and other key growth opportunities.

A company representative told Mobile World Live the cuts represent approximately 80 jobs and are expected to save $11 million in annual operating costs.

The representative said Boingo Wireless’ business “changed significantly over the past few years, with the growth of DAS, carrier offload, military and multi-family” housing opportunities, but noted its corporate structure had not previously been updated to account for the shift.

Layoffs were a “difficult step” but necessary to prioritise sales in growth areas over its legacy retail Wi-Fi and advertising businesses and drive long-term revenue and profitability, the representative added.

In Q3, Boingo Wireless revenue dipped less than 1 per cent year-on-year to $64.7 million. DAS revenue accounted for 37 per cent ($23.7 million) of the total, with military and multi-family revenue contributing abother 37 per cent ($23.6 million). The remainder came from wholesale Wi-Fi (17 per cent), retail (6 per cent) and advertising (3 per cent) businesses.

The company expects to book $2.2 million in restructuring charges in Q4, primarily related to employee severance and benefit costs.

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Diana Goovaerts

Diana joins Mobile World Live as its new US Editor, reporting on infrastructure and spectrum rollouts, regulatory issues, and other carrier news from the US market. Diana comes to GSMA from her former role as Editor of Wireless Week and...

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