EarthLInk Cuts Jobs, Closes Centers - InformationWeek

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04:57 PM

EarthLInk Cuts Jobs, Closes Centers

The nation's third-largest ISP says it needs to outsource more to better compete with AOL and MSN.

EarthLink Inc. has announced plans to cut 1,300 jobs, 40% of its workforce, as the company consolidates and outsources its contact centers.

Under the plan, contact centers in Harrisburg, Pa., Roseville, Calif., San Jose, Calif., and Pasadena, Calif., will be closed, and the call-center staff at the company's Atlanta headquarters will be reduced.

Customer-support functions will now be handled largely by an outsourced contact-center provider. EarthLink already outsources most of its billing, sales, and tech-support calls.

The company says the cuts are necessary to help it compete in a highly dynamic marketplace. EarthLink is the country's third-largest ISP, behind AOL and MSN, with about 5 million subscribers.

Last January, the company also cut 1,300 jobs; it has now reduced its staff size by 60% in the last 12 months.

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