EarthLink nearing the end of the line?

Back in the days of dial-up, EarthLink was a key player, helping thousands of folks get their first taste of the Internet thanks to their user-friendly software. In recent years, however, the company has faltered as it attempts to take the next step in a post-broadband world. Despite attempts to break into the mobile broadband, smartphone and muni-WiFi markets, EarthLink still derives the lion's share of its revenues from traditional Internet access. We briefly noted yesterday that the company is laying off 900 employees--nearly half of its workforce--in an attempt to return to profitability, after four consecutive quarters of losses. While this isn't surprising considering the company's stalled muni-WiFi initiatives, it's still unwelcome news. Could this be the beginning of the end for EarthLink? ZDnet seems to think so, pointing out that "EarthLink's cutbacks signal a major setback in the company's evolution to break free of its dying dial-up business and become an Internet player with new services to attract subscribers."

For more on the downward spiral:
- see this ZDnet article