The job cuts are part of a restructuring plan by EarthLink to reduce operating costs and boost efficiency. As part of the plan, EarthLink will also close offices Florida, Tennessee, Pennsylvania, and California. The company will move its remaining operations to its Atlanta, Ga. facility.
Now read this from later on in the same article…
The company also announced Tuesday its board of directors voted to authorize the purchase of an additional $200 million of its outstanding shares of common stock. EarthLink now has $270 million available to repurchase its stock.
This is rewarding sellers of Earthlink stock at the expense of those who hang on to their Earthlink stock. Given that Earthlink is already having a tough time of it, it would make more sense for them to hang on to the money. When credit gets tight, you want to have cash on hand.