- ATLANTA (CBS.MW) -- Internet
service provider EarthLink on Tuesday said it would cut 1,300 jobs, or
25 percent of its total workforce, as part of the closure of call centers
in Dallas, Seattle and Sacramento, and one customer and technical support
facility in Pasadena, Calif.
-
- EarthLink officials said the moves are part of an effort
to streamline call-center operations and would result in a $20 million
annual savings in operational expenses. The company expects to record a
facility-exit charge of $41 million in its first quarter as a result of
the closures.
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- Garry Betty, EarthLink's CEO, said the closures are needed
to help improve the company's financial performance and "better compete
in a rapidly changing marketplace."
-
- EarthLink said the closures would begin Feb. 21 and be
completed within 30 days. The company expects its remaining call centers
in Atlanta, Harrisburg, Pa., and Roseville, Calif., to handle the responsibilities
of the closed facilities.
-
- The closures follow the shuttering last year of an EarthLink
facility in Phoenix.
-
- EarthLink's shares rose 31 cents, or 5 percent, to close
at $5.97.
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- Rex Crum is a reporter for CBS.MarketWatch.com in San
Francisco
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- http://www.marketwatch.com/news/yhoo/story.asp?guid=%7B6E6
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