Details Emerge About AOL's Massive Workforce Reductions

Authored by Mark Hefflinger on November 20, 2009 - 9:50am.

New York - A day after AOL announced plans to cut one-third of its workforce -- up to 2,500 employees -- details are beginning to emerge about specifics of the plan.

The Wall Street Journal reported that employees who take "voluntary" layoffs beginning next month will receive 3-9 months of pay and other benefits, depending on their positions.

Those who don't volunteer and are later let go only will receive up to four months.

Workers also must apply for the voluntary layoffs, with no guarantee that their applications will be accepted, according to the blog Silicon Alley Insider.

"This is lousy news for employees, who are faced with a 'jump now or wait to be pushed' decision, but it is designed to cheer investors," wrote Peter Kafka of AllThingsD.

The company said in a memo that it will inform workers of its decision in an email between Dec. 16-Jan. 1.

The moves will leave AOL about 4,400 employees, down from a high of more than 20,000, and save the company approximately $300 million a year.

AOL is scheduled to officially spin out from parent Time Warner (NYSE: TWX) on Dec. 9.

Related Links:
http://snipurl.com/tc3b6

http://snipurl.com/tc3bd (All Things D)

http://snipurl.com/tc3bx (WSJ)