On December 11, 2019, the Board of Directors of Boingo Wireless approved a plan to restructure the company’s business operations and will eliminate approximately 80 jobs constituting 16 percent of its workforce. In an SEC filing, Boingo expects that the workforce reduction will decrease operating costs by approximately $11 million.
“To help drive longer-term revenue and profitability, we are reorganizing the business into ‘core’ and ‘legacy’ business units,” the company said in a statement to shareholders.
“Core products include Carrier Services (DAS, Offload, 5G, CBRS), Military and Multifamily. These are areas where we will continue to focus and invest. Legacy products will be managed to maximize profitability with minimal incremental investment.”
“While we will recognize cost savings as a result, the primary reason behind the reduction in force is the business alignment to focus our resources on selling services to the carriers, the military and a growing multifamily business,” the company said. “While this difficult step was a necessary one, it will not impact our strategy of continuing to acquire key strategic venues to monetize with our carrier services technologies. We remain committed to investing in the core areas of our business.”
The announcement signals a rocky start for CEO Mike Finley, a former Qualcomm executive who replaced 17-year company CEO Dave Hagan in January of 2019.
December 17, 2019