Earthlink Lays Off 900, Restructures Company

Weeks ago we posted a rumor floated to us by an anonymous tipster who claimed Earthlink was about to be acquired. Following that rumor, commenters descended upon the post with scores of rumors that ranged from acquisition talk to mass layoffs. Today it turns out our tipster was off the mark, but our commenters had it right as today Earthlink layed off 900 employees and closed offices in San Francisco, Pasadena, Florida, Tennessee, and Atlanta. EarthLink CEO, Rolla P. Huff, said, "These changes get our cost structure in line, but there is much more to do. We expect to announce additional steps as we continue our work over the coming weeks and months." Earthlink expects to generate between $25 and $35 million in cost savings as a result of the massive restructuring.