EarthLink eliminates 900 jobs

The Internet service provider will close a Maitland office, along with others.

Etan Horowitz | Sentinel Staff Writer
August 29, 2007

Internet service provider EarthLink announced Tuesday that it is eliminating about 900 jobs and closing several offices, including one in Maitland.

Carla Shaw, an EarthLink spokeswoman, said “a couple dozen” employees worked out of the Maitland office. Fewer than 10 of the employees will continue to work for EarthLink and will work from home, she said. The others are being offered severance packages. The office handled software development for EarthLink.

The Atlanta-based company also is closing offices in Knoxville, Tenn., Harrisburg, Pa., and San Francisco and reducing its staff in Pasadena, Calif., and Atlanta.

In a news release announcing the restructuring, the company said the cuts will reduce operating costs and will generate $25 million to $35 million in cost savings through the end of the year. Rolla P. Huff, the company’s president and CEO, said Tuesday’s cuts are just the first step in EarthLink’s restructuring plan. The 900 jobs being cut account for nearly half the company’s work force.

In recent years, EarthLink has faced intense competition from cable and phone companies in attracting Internet customers. The company said it expects its subscriber growth to slow in 2008.

Locally, customers can obtain EarthLink Internet service directly through the company or as an option offered by Bright House Networks. EarthLink’s restructuring won’t have any impact on customers, according to EarthLink and Bright House representatives.

In April, telecommunications provider Embarq and EarthLink ended their relationship. Embarq customers with EarthLink.net e-mail addresses are being migrated to Embarqmail.com e-mail addresses.

Some customers have experienced problems in switching their e-mail addresses. An Embarq spokeswoman acknowledged that there have been some kinks but said the company is working with customers to fix any problems.

Steve Huey
COO

Current: Head of Integration, Consumer Source, Inc.

Past: COO at Rentalhouses.com
VP & General Manager at Aluria Software

Education: Business Management, MBA, Emory University – Goizueta Business School
Accounting, Finance, BS, Miami University

From Huey’s own equity company page:

Selected Projects

RentalHouses.com — Private Transaction, turnaround project and advised on sale of the company, COO (January 2006)

Aluria Software — Private Transaction, advised on acquisition of the company, headed integration, General Manager (October 2005)

EarthLink Cable — Public Company, $210 Million business, headed division increased overall profitability 15% (September 2004)

EarthLink Software — Public Company, Launched Application Services Business growing revenue in excess of $10 million (September 2003)

Engage Technologies — Public Company, restructuring project, Head of Human Resources (November 2001)

uBid.com — Public Company, advised on acquisition, $417 million (January 2000)

Flycast Networks — Public Company, advised on acquisition, $925 million (January 2000)

Yesmail.com — Public Company, advised on acquisition, $500 million (December 1999)

AdKnowledge — Private Transaction, advised on acquisition (December 1999)

Alta Vista — Private Company, advised on acquisition, $2.3 billion (June 1999)

From the Press release from Consumer source:

“Steve was instrumental in the turnaround effort with RentalHouses.com, helping to position the company for sale,” said Bob Metz, CEO, Consumer Source. “With his leadership our Rentals.com division will only continue to strengthen and grow.”

Prior to joining RentalHouses, Huey was at Earthlink, where he held a variety of positions, ranging from Mergers and Acquisitions to Product Development, to Business Management and Turnarounds. While at Earthlink, Huey was also general manager of Aluria Software, a subsidiary of Earthlink based in Orlando, FL.

“Rentals.com is the most comprehensive real estate rental site on the Web, with nearly 45,000 complete listings,” said Jamie Gallo, President, CSinter@ctive. “With Steve onboard, we’re confident that we’ll retain and exceed our leading position in the market.”

If you really go back and look at the companies Huey has been involved with the track record is not good……..as far as the companies doing well that is!

Other Prop Managers are still paying the original price or being phased in gradually to a higher price good until this December. Your Rep must of forgot that!

When they had their Rentals.com sales meeting in Atlanta last January the Rentclicks folks mistook the bus load of RH employees as lost hillbillies!

Yes! Barbarians at the gates….Part 2.

RH.com would have gone out of business in due course with their pricing model.

I would like to know how many people still have that $299 plan that is rumored to still be around.

Perhaps RentalHouses has to honor the $299 unlimited special that some managers are still getting until the end of the year. After that they can redirect it to rentals.com.