EarthLink to cut 900 jobs to reduce costs

EarthLink to cut 900 jobs to reduce costs

The Internet service provider EarthLink has announced their plans to cut costs by slashing close to around 900 jobs.

The company would also perform an additional $200 million share buyback. These news announcements helped the company improve its stock price by around 10%.

EarthLink added in a statement that it plans to take charges of about $60 million to $70 million related to the restructuring.

EarthLink President and Chief Executive Rolla Huff had this to add: “We expect to announce additional steps as we continue our work over the coming weeks and months. While we recognize this is a difficult time for those affected individuals, this was a needed action for the company to better align our cost structure with our existing business.”

It added that they are expected to post a full-year net loss of $79 million to $109 million.