AOL to Cut One-Third of Staff; Voluntary Layoffs to Begin Dec. 4

Authored by Mark Hefflinger on November 19, 2009 - 8:51am.

New York - Needing to drastically trim costs as it prepares to separate from parent company Time Warner (NYSE: TWX), AOL said on Thursday that it plans to trim its workforce by about one-third -- approximately 2,300 workers -- through a combination of voluntary and involuntary layoffs. The company said that the goal of the restructuring is to reduce its annual operating costs by $300 million.

In a note to employees, published by the blog Silicon Alley Insider, CEO Tim Armstrong said that voluntary layoffs will be offered Dec. 4-11, with involuntary cuts to follow if the number of takers falls short.

Armstrong also reportedly will give up his 2009 bonus, expected to be about $1.5 million.

The moves will cost AOL around $200 million in one-time charges.

Time Warner announced on Monday said that it plans to complete the spinoff on Dec. 9.

AOL currently has about 6,900 employees.

Related Links:
http://snipurl.com/tbhnq

http://snipurl.com/tbhnt (SEC filing)