Home > In Focus > Business News
Time Warner-owned AOL announced late this week that it is hoping to cut its payroll by a third.
In a filing with the Securities and Exchange Commission, AOL revealed that it will try to trim operating costs by $300 million in the near future. As part of the cost-cutting, AOL said, it has informed employees that "approximately a third of the Company's current employee base" will be eliminated "on a voluntary and involuntary basis."
That amounts to 2,500 job cuts.
The announcement is another woeful chapter in the annals of AOL's history. The company - originally America Online - was synonymous in the 1990s with dial-up internet access. It merged with Time Warner in 2000 near the peak of its market capitalization, but the merger was largely unsuccessful. Earlier this year, Time Warner announced that it will spin off AOL into a separate company, effective in early December.
AOL has shifted in recent years from its heritage as an internet service provider, attempting to become a provider of ad-supported content. Sites like Engadget and TMZ are AOL-owned and operated.
By Benjamin Foster
AOL's woes continue as it eliminates a third of its workforce
Time Warner-owned AOL announced late this week that it is hoping to cut its payroll by a third.In a filing with the Securities and Exchange Commission, AOL revealed that it will try to trim operating costs by $300 million in the near future. As part of the cost-cutting, AOL said, it has informed employees that "approximately a third of the Company's current employee base" will be eliminated "on a voluntary and involuntary basis."
That amounts to 2,500 job cuts.
The announcement is another woeful chapter in the annals of AOL's history. The company - originally America Online - was synonymous in the 1990s with dial-up internet access. It merged with Time Warner in 2000 near the peak of its market capitalization, but the merger was largely unsuccessful. Earlier this year, Time Warner announced that it will spin off AOL into a separate company, effective in early December.
AOL has shifted in recent years from its heritage as an internet service provider, attempting to become a provider of ad-supported content. Sites like Engadget and TMZ are AOL-owned and operated.
By Benjamin Foster
