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.
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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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