AOL Cuts 20 Percent of Workforce
AOL parent company Time Warner is cutting 2,000 jobs across the AOL division, including 750 positions in Northern Virginia.
About 1,200 of the cuts will be in the U.S., with the balance of layoffs coming at AOL operations outside of the U.S. The company will notify affected U.S. employees Tuesday, says AOL spokeswoman Anne Bentley. The rest of the reductions are expected to be made by the end of the year, she says.
The cuts represent about 20 percent of AOL's worldwide workforce. AOL has about 4,000 employees in Northern Virginia.
"This realignment will allow us to increase investment in high-growth areas of the company - as an example, we added hundreds of people this year through acquisitions - while scaling back in areas with less growth potential or those that aren't core to our business," Time Warner chief executive Randy Falco said in a memo to AOL employees obtained by the Washington Business Journal. "Everyone impacted by this reduction deserves our thanks and respect for their contributions to the company."
Falco's memo promised "generous severance packages" to affected employees.
Time Warner (NYSE: TWX - News) has shifted AOL's business from a subscriber-driven company to one supported by advertising. The division lost 1.1 million paid subscribers in the second quarter, trimming overall revenue by 38 percent, although advertising sales continue to rise.
Last month, the company announced plans to move AOL's corporate headquarters from Dulles to New York.
Published October 15, 2007 by the Washington Business Journal
About 1,200 of the cuts will be in the U.S., with the balance of layoffs coming at AOL operations outside of the U.S. The company will notify affected U.S. employees Tuesday, says AOL spokeswoman Anne Bentley. The rest of the reductions are expected to be made by the end of the year, she says.
The cuts represent about 20 percent of AOL's worldwide workforce. AOL has about 4,000 employees in Northern Virginia.
"This realignment will allow us to increase investment in high-growth areas of the company - as an example, we added hundreds of people this year through acquisitions - while scaling back in areas with less growth potential or those that aren't core to our business," Time Warner chief executive Randy Falco said in a memo to AOL employees obtained by the Washington Business Journal. "Everyone impacted by this reduction deserves our thanks and respect for their contributions to the company."
Falco's memo promised "generous severance packages" to affected employees.
Time Warner (NYSE: TWX - News) has shifted AOL's business from a subscriber-driven company to one supported by advertising. The division lost 1.1 million paid subscribers in the second quarter, trimming overall revenue by 38 percent, although advertising sales continue to rise.
Last month, the company announced plans to move AOL's corporate headquarters from Dulles to New York.
Published October 15, 2007 by the Washington Business Journal
Labels: America Online, AOL, Time Warner, TWX
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