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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (40465)	8/21/2001 8:39:43 PM
From: stockman_scott	Respond to of 65232

AOL Time Warner to Cut 1,200 AOL Jobs Tuesday August 21 6:30 PM ET By Reshma Kapadia NEW YORK (Reuters) - AOL Time Warner Inc. (NYSE:AOL - news), the world's largest Internet and media company, said Tuesday it will cut more than 1,200 jobs at its AOL Internet unit and will take a third-quarter charge of $100 million to $125 million. The unit, which employs about 16,000 people, also said it will eliminate another 500 jobs as part of an alliance between Netscape and Sun Microsystems Inc. (Nasdaq:SUNW - news) The cost-cutting effort -- the third major round of layoffs at the company after the completion of its $106.2 billion merger in January -- was widely expected by analysts and confirmed what sources had told Reuters earlier. Dulles, Va.-based AOL said the reorganization aims to leverage its $106.2 billion merger and more tightly integrate its multiple online brands and Web properties. As part of the reorganization, the company said it will create a new AOL Interactive Services Group that will encompass the AOL service and its local Digital City guide business. It will be led by AOL President Jonathan Sacks. It will also create a new AOL Web Properties Group, led by Jim Bankoff, formerly president of the pioneering Netscape software business. The group will encompass Netscape, value-oriented Web service CompuServe, Moviefone, Mapquest and popular instant messaging services ICQ and AOL. The move follows cuts announced earlier this year. In January, the company cut 2,400 jobs in several areas, including at its 24-hour news network CNN, its publishing unit that houses People and Time magazines, and its film units, including New Line Cinema. The company, which employs a total of about 90,000 people, also said this summer it would close its Warner Bros. Studio Stores by October, cutting 3,800 jobs. Analysts have said the company has to cut costs to come close to meeting its aggressive financial targets for 2001, given the economic uncertainty and advertising slowdown. While some analysts have reduced their 2001 earnings and revenue estimates for AOL Time Warner recently, most concur the company is still one of the better-insulated media companies. On Tuesday, AOL Time Warner shares fell 31 cents to close at $39.90 on the New York Stock Exchange (news - web sites), on a day when the U.S. Federal Reserve (news - web sites) cut interest rates for the seventh time this year and all three major U.S. stock indexes closed at lows not seen since April. AOL Time Warner shares are down from a 52-week high of $62.25, but above their year low of $31.75.