Headlines provide numbers of how many people are laid off from which company every day. Learn what it's like for the people inside a business that was once everybody's dot-com darling—and why now is a good time to get to the point and reevaluate your ISP's business plan.

by Patricia Fusco ISP-Planet Managing Editor [April 3, 2001]

Alex Luttrell, former EU TAC Senior Technician at NorthPoint Communications, said it came as no surprise to most people working at the company that they were finally let go last week.

"Those few brave souls left standing at the end survived numerous rounds of extensive layoffs, not to mention the slow, painful decline of what was once a coveted darling of the industry," Luttrell said. "NorthPoint was was supposed to take off like a rocket, instead it's extinct."

Upside personnel
Luttrell actually left NorthPoint late in October last year, shortly before the planned Verizon merger was nixed. He said that no one would have predicted that Verizon would opt out of the deal and that AT&T would shut down NorthPoint so quickly.

"Me and many of my fellow co-workers knew that without funding through a merger or buyout, NorthPoint would fail," Luttrell said. "We could all see it happening—slowly. It's amazing how different a company looks from within."

Luttrell said it's sad that more than 100,000 DSL subscribers are on the verge of having their services completely shut off.

"For many of these businesses, who don't keep track of business and technology news like this, the loss of their DSL access will come as a complete surprise—leaving them dead in the water," he said.

Luttrell wonders about how the actual shut down process would take place and when all the circuits will die, which is a matter nobody at NorthPoint or AT&T will discuss at this time.

But Luttrell remains optimistic about the current state of affairs, even in a gloomy economy filled with pessimists. He said that most of the people he knew at NorthPoint that were laid off either have new jobs lined up or have serious offers to consider with other firms.

"Most of us are entering an economy of questionable futures, but the broadband industry still has potential," Luttrell said. "No one is suffering unduly. But a lot of us are pretty disappointed, especially those of us who came onboard early on and put our hearts and souls into a company that we believed in. Somewhere along the way, it all changed."

Downside of the deal
Such is human nature that fundamental dispositions vary greatly. Not all would-be former NorthPoint employees have the same views as Luttrell. If an internal email from one NorthPoint supervisor is any indication, the downside of human nature could leave AT&T with a few less assets to acquire from the defunct DSL dealer:

"I am dismayed I have to send out an email to remind a small number of you of this. I realize that noone [sic] is particularly happy that NorthPoint has to wind up like this—me, most of all. We all know the chain of events that transpired. However, given all possible scenarios, we have ended up with the most attractive option. And I'm particularly happy that our network and many of our people will find a home with AT&T.

"What I'm sending this quick note out for is to remind you of something that should remain, regardless of the circumstances—integrity and self respect. In the past few days we've had a rash of burglaries by employees. We've had NOC chairs stolen, laptops, clocks and even a character from the Speedy's Diner sign.

"To those of you who've taken the liberty to steal, I'd remind you that stealing is a crime. But more importantly, stealing from NorthPoint at a time like this shows a lack of class and a lack of integrity. I think we've been able to hold our heads high through these negative circumstances because we've always been a company with integrity.

"Please don't debase yourselves by taking advantage of an unfortunate situation. To the vast majority of you with integrity, please remind those who've let it slip if you're aware of stolen items. And for those of you who have second thoughts and wish to return stolen items, please return them to B.M. No questions asked—you'll have done the right thing."

Discontent beats quickly within the heart of any disgruntled employee that believes an employer has done them wrong. NorthPoint has made its fair share of enemies among former employees, who maintain passionate opinions about the company's demise. Some anti-NorthPoint sentiments are rather mild, such as rechristening the company "NoPoint."

And no matter how embarrassing it may be for NorthPoint and its executives, it is far better for former employees to express their discontent on the Web than choose to deliver a more violent massage, akin to the tragedy at Edgewater Technology.

Remains of the day
Whether exponential growth, changing company policies, switching executive leadership, The Street's disbelief, or that the service provider segment simply come of age; one thing is certain—there are people behind these lines—and these individuals are just like you and me.

NorthPoint's people—its heart and soul—kept working to attain its goals and fulfill its vision of delivering quality broadband connectivity to businesses and ISPs alike—long after the company's financial fate was sealed.

Golden parachutes might fill the sky with executives cast out from defunct dot-com firms. But these lackluster leaders typically land softly in silver-lined severance packages—the likes of which few rank and file workers will ever see. Case in point; NorthPoint CEO Liz Fetter received a $45,000 bonus last week when she shifted became an employee of AT&T. Naturally, that's in addition to her half-million dollar annual income.

In biting contrast, NorthPoint's remaining employees were not given a severance package. As a matter of fact, those that had accrued more than 100 hours of vacation pay were informed that they would only receive 25 hours of benefit pay, maximum. Naturally, the employees were informed of this as they were being laid off.

So, rather than scanning the headlines to see which company cut how many this week, think about the people behind the lines that played a part in building the broadband revolution. Think about the thankless masses cast out of NorthPoint and take a long, hard look at your ISP's business plan.

There is no time like the present to make sure that your employees understand where your ISP operation stands. While the actions of one independent ISP might not cure current dot-com malaise, an honest appraisal of where your business is today will impact where your ISP goes tomorrow.

It's too late to resuscitate NorthPoint and there's not much you can do about how its former employees were treated—unless you happen to be hiring. But you can make sure that your ISP business is fault tolerant and ready to meet the challenges that lie ahead. After all, it would be pointless to end up like NorthPoint.

—End