AOL Set To Cut 2,300 Jobs
November 20, 2009 at 4:27 AM (PT)
AOL, the Internet unit and online radio provider, being spun off from TIME WARNER INC. in DECEMBER, plans to cut about one-third of its workforce over the next several months, reports BLOOMBERG.
Spokesperson TRICIA PRIMROSE said AOL employs about 6,900 people, so job cuts of about 2,300 are to be expected. The company said it would begin a voluntary layoff program DECEMBER 4th and is looking for as many as 2,500 volunteers, she said. If that number isn't met voluntarily, AOL will begin firing employees.
"They need to get leaner to enhance the stock," said BENCHMARK CO. analyst FRED MORAN in a BLOOMBERG RADIO interview. "They’ve had the opportunity to compete for the last decade and arguably they’ve failed."