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There was also mention both in that article and in an item a day earlier that Garry Betty got a big bonus while more than 1,000 employees were let go.

I think that Earthlink was faced with a situation where revenues were no longer growing and United Online (UNTD - NASDAQ) was attracting hundreds of thousands of customers with its cut-rate service. I think UNTD has around 3 million subscribers and only has 500 employees. So ELNK took over People PC and had to slash costs in order to be able to compete sucessfully in the lower cost tier of the market. The trend these days is for companies to "outsource" as much as possible in order to lower costs.

I think the management team deserves a lot of credit for the turnaround they have produced in the last 12 - 18 months. It is too bad that all those people had to lose their jobs but I think the long-term financial health of Earthlink was on the line and now the future looks bright indeed...

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