EarthLink Plans to Cut Nearly Half of Work Force

Aug 29, 03:01 PM

Current Headlines: By Bloomberg News

EarthLink Inc. plans to cut 900 employees, almost half its workers, after subscribers fled the unprofitable U.S. Internet service provider.

EarthLink said it will close or scale back offices in five states this year, cutting the Atlanta-based company's work force to about 1,000 employees. The firings will cost as much as $70 million in the next two quarters. EarthLink also trimmed its sales forecast for the year.

Chief Executive Officer Rolla Huff is shrinking the company after it shed 1 million subscribers in the past year.

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