Print 14 comment(s) - last by tmp8000.. on Aug 31 at 2:03 AM

EarthLink will cut almost half of its work force before the end of the year

EarthLink announced it will cut its workforce by almost 50 percent, citing industry change and new venture issues as two of the main reasons behind the decision.  The 900 job cuts and four office closures should be completed by the end of 2007. It is possible more job cuts could be announced before the end of the year.

According to a blog published on Wired, the job eliminations are not going as smoothly as all parties would like.

CEO Rolla Huff said the company must now refocus and may head in a new direction to bounce back; however, EarthLink plans to keep promoting the Helio mobile phone service.  Helio lost at least $40 million USD last quarter according to financial results and EarthLink has already spent roughly $100 million USD on the project.

Even though EarthLink continues to roll out new services for consumers, the company still has problems finding steady revenue streams outside of its broadband subscriptions.  EarthLink warned investors that it may be difficult to continue to recruit new subscribers in 2008.  

EarthLink will no longer be able to offer the city of San Francisco citywide WiFi, an initiative the company was working alongside Google to launch.  EarthLink will also pay the city of Houston a $5 million fee after failing to build the city's WiFi network as scheduled.  Chicago stopped talks with EarthLink after being told the price of network infrastructure would have to be raised.

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By Gul Westfale on 8/30/2007 8:31:08 AM , Rating: 4
the job eliminations are not going as smoothly as all parties would like.

no kidding.

RE: really?
By mdogs444 on 8/30/2007 8:32:30 AM , Rating: 2
Because losing your job always goes over smoothly...

RE: really?
By therealnickdanger on 8/30/2007 9:27:24 AM , Rating: 3
They just need to wait until a Friday. There's less chance of an incident if you fire people on Fridays.

RE: really?
By theapparition on 8/30/2007 12:54:53 PM , Rating: 3
Maybe they should just fix the glitch.

RE: really?
By MrBungle123 on 8/30/2007 1:09:42 PM , Rating: 3
that would allow things to work themselves out naturally.

RE: really?
By zerocool84 on 8/30/2007 5:51:08 PM , Rating: 2
Let me ask you something. When you come in on Monday, and you're not feelin' real well, does anyone ever say to you, 'Sounds like someone has a case of the Mondays'?

RE: really?
By tmp8000 on 8/31/2007 2:03:47 AM , Rating: 1
No. No, man. Shit, no, man. I believe you'd get your ass kicked sayin' something like that, man.

RE: really?
By ttowntom on 8/31/2007 12:10:28 AM , Rating: 2
Sort of a redundant statement, isn't it?

SK Telecom
By Shadowmaster625 on 8/30/2007 11:35:03 AM , Rating: 2
SK Telecom must be shaking their heads wondering what is wrong with us. lol. What I don't get is why helio is so expensive.... I mean wtf did they expect to happen at those prices. i must say though, if I was willing to spend $60 a month on a phone, I'd go with helio.

RE: SK Telecom
By marvdmartian on 8/30/2007 12:05:30 PM , Rating: 2
Hey, don't call it a telephone!! ;)

Seriously, I wonder how much business they've lost because someone said, "Well, shoot! I wanted a telephone! But I guess if it's not a telephone, I can't go with Helio......" LOL

I wonder if Earthlink's problem has anything to do with trying to push their broadband service into areas that already have the 'big boys' controlling things. Let's face it, competition isn't always friendly, especially where the large money is involved. Where I live, you're pretty much stuck with RoadRunner, AT&T dsl,Clearwire/Xanadu wireless, or satellite internet, for your broadband needs. I wanted to check out Earthlink's broadband, but they're pretty much stuck in the major metropolitan areas.

RE: SK Telecom
By FITCamaro on 8/30/07, Rating: 0
By Reflex on 8/30/2007 11:57:06 AM , Rating: 3
Xenu must be pleased. ;)

By FightingChance on 8/30/2007 1:34:39 PM , Rating: 3
Good, now they can eliminate half of my cable internet bill.

By GoatMonkey on 8/30/2007 1:33:36 PM , Rating: 2
I have a new Earthlink DSL modem sitting on my desk right now waiting to be installed tonight. Activation is at 6pm. Now I'm not sure what to think. Do you guys think I should just cancel it before it gets started?

"This is about the Internet.  Everything on the Internet is encrypted. This is not a BlackBerry-only issue. If they can't deal with the Internet, they should shut it off." -- RIM co-CEO Michael Lazaridis
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