AOL 2,500,
a third of work force
By ANDREW VANACORE, AP Business Writer Andrew Vanacore, Ap Business Writer
siliconinvestor.com
NEW YORK – AOL LLC, an Internet company struggling to adapt to an advertising-driven economy, is looking to shed more than a third of its work force as it prepares to spin off from Time Warner Inc. next month.
Major job cuts had been expected, but the magnitude hadn't been known until Thursday. AOL, which now employs 6,900 workers, is asking for 2,500 volunteers to accept buyouts and plans to resort to layoffs if it does not get enough people.
AOL hopes to trim annual costs by about $300 million. The job cuts still need approval from the new AOL board and come on top of about 100 layoffs on Nov. 10.
Primrose would not say where the new cuts would occur or what positions they would involve. The company is based in New York but also has major operations in Northern Virginia.
The voluntary offer is open to all employees from Dec. 4 though Dec. 11, AOL spokeswoman Tricia Primrose said.
Tim Armstrong, the company's CEO, is also forgoing a bonus this year. |
