Earthlink Corporate Restructuring
Tuesday, August 28th, 2007EarthLink, Inc. today announced a corporate restructuring plan. This plan will reduce operating costs across the company. The restructuring will begin immediately and be completed by the end of the year…
Approximately 900 jobs will be eliminated and the company will close its Orlando, FL; Knoxville, TN; Harrisburg, PA and San Francisco, CA offices and substantially reduce its presence in Pasadena, CA, and Atlanta, GA. EarthLink expects to record facility exit and restructuring costs of $60 - $70 million associated with the plan. These costs include $30 - $35 million for certain employee-related costs, $10 - $15 million for lease termination costs, $8 - $10 million for other costs to streamline operations and $8 - $10 million non- cash asset write-offs. EarthLink expects that these facility exit and restructuring costs will be recognized primarily in the third and fourth quarters of fiscal year 2007.
