I’m not really sure who uses Earthlink still. I guess people with dial-up chillin’ way out west. Either way, another sign that the company is failing has struck us, this time in the form of job cuts. About 900 people will lose their jobs as part of Earthlink’s restructuring efforts to save money for the company. It’s expected to save about $25-$35 million for the company, something it needs to keep going.
Says Earthlink President and CEO, Rolla P. Huff:
These changes get our cost structure in line, but there is much more to do,” said Rolla P. Huff, EarthLink President and CEO. “We expect to announce additional steps as we continue our work over the coming weeks and months.”
Given current trends in the Internet access industry, management expects industry-wide gross subscriber additions to decelerate in 2008. This will result in fewer gross subscriber additions for EarthLink as it will no longer add new subscribers that do not yield a positive lifetime value for our shareholders. Additionally, as subscriber growth slows, the company expects to realize fewer migrations from narrowband to broadband.
Broadband is king.
And Earthlink Cuts 900 Jobs [GigaOm]
I’m a bit pissed about being cut especially when there are clowns running around here that never show anything for their work. But I guess what it comes down to is politics. Sure the rest of the world didn’t notice but there are still 900 or so people with out a job.
EarthLink sells broadband access, too. They just have to resell DSL and cable from the duopoly to do so, which puts a hurt on the economics.