AOL Plans to Cut One-Third of Employees, About 2,300

[marmar]

AOL Plans to Cut One-Third of Employees, About 2,300 (Update2)
By Sarah Rabil


Nov. 19 (Bloomberg) -- AOL, the Internet unit being spun off from Time Warner Inc. in December, plans to cut about one- third of its workforce over the next several months.

AOL employs about 6,900 people, AOL spokeswoman Tricia Primrose said in an e-mail, indicating job cuts of about 2,300. The company will begin a voluntary layoff program Dec. 4 and is looking for as many as 2,500 volunteers, she said. AOL will begin firing employees if the voluntary departures fall short.

“They need to get leaner to enhance the stock,” Fred Moran, an analyst with Benchmark Co. in Boca Raton, Florida, said in a Bloomberg Radio interview. “They’ve had the opportunity to compete for the last decade and arguably they’ve failed.”

AOL is aiming to reduce its annual operating costs by about $300 million through the restructuring, the New York-based company said today in a regulatory filing. AOL, an online pioneer, is now combating a slump in advertising revenue that contributed to a 50 percent drop in operating income at the division in the third quarter.

Chief Executive Officer Tim Armstrong, 38, told employees in July that job cuts were possible. Armstrong, a former Google Inc. executive named CEO of AOL in March, plans to overhaul advertising and develop more local and niche Web sites to help turn around falling sales. .........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601109&sid=az3GqHUSJMvg&pos=12

[Sebastian Doyle]

1. As much as I hate to see any more people out of work

AOL is the one (non Wall Street or insurance) entity that really needs to be left in the dustbin of history's greatest failures.

[JonQ]

2. Amazing

AOL is still around?

[marmar]

4. They've got at least 10 or 20 subscribers left, right?

nt

[JonQ]

6. With all the free CDs they send out

I can't see why anyone would subscribe.

[KG]

3. well, it's not like customer service can get any worse.

[Raster]

7. They could cut the ENTIRE customer service department, and the customer service

would not get any worse. They are the "standard."

[HughMoran]

5. Burn AOHell, burn

:)

[Shagbark Hickory]

8. What do they need 6900 workers for? They give their service for free. They should ask for a bailout

[Bitwit1234]

9. The thing with most of these company cuts

is they are trying to make the employees double up. That way they have less to pay out. And since the economy is the way it is they know employees will pick up the slack and not complain. I know some companies are hurting, but I will bet anything they are just screwing employees.