Feeds

Earthlink cuts half its workforce

Workers pay for slack broadband strategy

High performance access to file storage

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. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.