San Francisco (CA) – Oh how the mighty have fallen, Earthlink will be firing 900 employees from its San Francisco facility as part of its restructuring plan. The company will also close offices in Orlando, Knoxville and Harrisburg. Its Atlanta headquarters and Pasadena offices will remain, but president and CEO Rolla Huff says some workers at those locations will also lose their jobs.
Huff has been on a restructuring binge after he became president and CEO in late June. Earthlink has fired much of their US technical support staff and outsourced the positions overseas.
Earthlink was once the darling of ISPs and received several awards for excellence during the dotcom boom years. However, now the company is seeing a prolonged slump in its dial-up sales. Earthlink has turned to non-traditional sources of revenue like putting up public wi-fi hotspots and reselling DSL subscriptions.
Huff says the cuts should save Earthlink between 25 and 35 million dollars the rest of 2007. Despite the lay offs, Huff did find money in the budget to hire long-time coworker Joe Wetzel as the company’s new operating officer. Huff and Wetzel worked together at telecomm firm Mpower.