EarthLink fired 900 employees

EarthLink, a US-based Internet access service provider (ISP), suddenly announced a layoff of 900 employees and shut down four offices in some densely populated states such as Orlando and San Francisco. .

This decision was made by EarthLink while the company is accused of making losses. With the three-quarter decline in profit this year has made the company's business difficult.

The 288-square-mile wireless Internet coverage plan in Chicago has been discontinued due to the high cost of Wi-Fi system investment.

In addition, EarthLink's urban Wi-Fi coverage project also has problems because of the fierce competition from emerging technologies capable of wider coverage.

In addition, the company's Helio wireless joint venture project with Korea's SK Telecom partner was also demolished. Although before that, EarthLink had decided to invest USD 220 million in this joint venture and could invest another USD 50 million after the project was reprimanded for quarterly losses.

These difficulties forced this ISP to take into account operating costs cuts.

Forecasting, the yearly profit deficit will fluctuate from 79 million to 109 million USD. The reform plan has been discussed, EarthLink hopes to save 25 million to 35 million USD from now until the end of the year.

Vu Anh Tu