AOL to Cut 2,000 Jobs as Part of Restructuring

Authored by Mark Hefflinger on October 15, 2007 - 9:46am.

Dulles, Va. - Continuing its shift toward online advertising, AOL plans to cut 2,000 jobs -- or about 20% of its workforce -- a website owned by Dow Jones first reported on Monday.

About 750 of the cuts will occur in Northern Virginia.

Citing an internal memo from CEO Randy Falco, the All Things Digital website said that the cuts will be spread across the company's operations in the U.S. and Europe, with "some unidentified senior executives" also departing.

AOL, which recently announced plans to move its headquarters from Dulles to New York, is combining its various digital advertising companies, including Advertising.com, Tacoda, Third Screen Media, Lightningcast, and AdTech, into a unit known as "Platform A."

The job cuts stem from the fact that AOL is focusing more on online advertising, which is less labor intensive than dealing with custom service issues from dial-up Internet clients.

Related Links:
http://tinyurl.com/2smnt9 (All Things Digital)

http://biz.yahoo.com/rb/071015/aol_layoffs.html?.v=5

http://biz.yahoo.com/ap/071015/aol_layoffs.html?.v=2