Internet service provider Earthlink has announced it’s going to shed 900 jobs and close four of its offices as it attempts to control operating costs.
The affected offices are will Orlando, Knoxville, Harrisburg, and San Francisco. Additionally, the company will “substantially reduce its presence” in Atlanta and Pasadena.
The company currently employs about 1,900 people, and expects the reductions to save it between $25 and $35 a year.
The major problem appears to be that potential customers want broadband rather than dial up service. Earthlink operates municipal wireless networks in four cities, and is studying those before deciding how to proceed.
As if that wasn’t enough bad news, the company lowered its revenue outlook for the third time this year and offered a warning for 2008. More job and office cuts could be announced during the remainder of 2007.
The company is also planning to repurchase $200 million of stock. Earthlink shares rose 48 cents, to $7.34, on the news.
