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January 6, 2004

Another 1,300 call center layoffs as EarthLink outsources

About 1,300 people are to lose their jobs as EarthLink Inc closes four of its five remaining customer support call centers in four US cities, and scales back operations at the remaining one, the company said yesterday.

By CBR Staff Writer

It said centers in California and Pennsylvania will be closed, while a facility in its hometown of Atlanta will be downsized. Some of the jobs will be outsourced, but the company did not say where.

EarthLink said it will record a $36m charge in the current quarter, and will reduce its net income forecast, currently $31m to $63m for the year, accordingly. The company did not disclose how much it intends to save from the move.

Last January the ISP made an almost identical announcement when it laid off 1,300 people as it closed three call centers. It said then that it expected to save $20m a year from lower payroll and facilities costs.

This article is based on material originally produced by ComputerWire.

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