Feeds

Earthlink cuts half its workforce

Workers pay for slack broadband strategy

Top 5 reasons to deploy VMware with Tegile

Financially-challenged US ISP Earthlink said on Tuesday it will slash about half its workforce after failing to ride the broadband wave Stateside.

The Atlanta-based firm will can 900 staff as part of a sweeping cost-cutting exercise. It also lowered its revenue predictions for the third time this year to between $1.19bn and $1.21bn.

Recently appointed CEO Rolla Huff opened up a can of management speak: "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." More cuts could be on the way, he added.

Earthlink is suffering as its dial-up hold outs finally make the switch to broadband from other providers. Its belated high-speed strategy was to involve itself heavily with municipal Wi-Fi projects, but that has stalled because of privacy and network quality concerns over its flagship San Francisco deployment. Chicago yesterday binned its plans for city-wide Wi-Fi through Earthlink because of the expense.

The firm's also been hit by heavy losses from a joint venture with the South Korean government called Helio.

Wall Street liked the plan, which Earthlink said will save between $25m and $35m this year. Shares rose 7 per cent on the news. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.