EarthLink to Cut 900 Jobs and Close Four Offices

Internet service provider Earthlink announced today that it will cut more than 900 jobs and close four offices in an effort to reduce operating costs. The company will also repurchase $200 million of its stock as part of the plan, said Rolla P. Huff, the Atlanta-based company's president and chief executive, with more cuts possible before the end of the year. The company will close offices in Orlando, Fla., Knoxville, Tenn., Harrisburg, Penn. and San Francisco, along with "substantially reduc[ing] its presence" in Atlanta, Georgia, and Pasadena, Calif. These cuts come as the ISP struggles to attract dial-up customers who are turning to high-speed alternatives.

"While we see this as an important first step in unlocking the underlying value that we believe is in our company, we are only eight weeks into the process of repositioning EarthLink for the future," Huff said when asked about the cuts. "These changes get our cost structure in line, but there is much more to do." These cuts are expected to save Earthlink anywhere from $25 million to $35 million through the rest of the year because of the restructuring.

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8 Comments

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we're only eight weeks into the process of repositioning Earth for the future

I don't know, but I think it's a bit bold for an ISP to talk about planet repositioning. I mean, c'mon guys! Let's focus on the Internet and stuff like that. The Earth is exactly where it should be; there's no need for repositioning it. Plus, only 8 weeks? You'd think it would take at least 4 or 5 months.

devHead said,

I don't know, but I think it's a bit bold for an ISP to talk about planet repositioning. I mean, c'mon guys! Let's focus on the Internet and stuff like that. The Earth is exactly where it should be; there's no need for repositioning it. Plus, only 8 weeks? You'd think it would take at least 4 or 5 months.

and priceless...

I used to work for Earthlink in their web hosting department. They actually ran their own servers for that part of the business, however crappy they were. I started in 1999 in the Pasadena call center, moved out and transferred to the Harrisburg PA call center, then got laid off in 2004 when they closed the call center off 81. The office they are referring to in Harrisburg now has only a hand full of people from what I understand. I still have a couple of friends on the inside at Pasadena. But, #3 is right. Earthlink did nothing for themselves, and rebranded everyone else's product. I think it's about time they shut the whole operation down, even though I miss working there. I loved the web hosting department!

i used to work for earthlink's tech support in omaha before they closed that down last year. earthlink never has opperated it's own internet infrastructure. The only thing earthlink really offers is an ip address and an email address. All dialup connections go through local phone company equipment. Earthlink's DSL is really another companies DSL service rebranded... and that also goes for their cable and satelite connections. When i left the only technology infrastruture i've seen them develop is their VOIP service.

I didn't know Earthlink was still around.
I know in the rural areas, you can't get moderately priced broadband, so dial up is your only
answer. I wonder if they still charge 20+ dollars a month?