This morning the Wall Street Journal reported AOL, Inc. plans to cut 2,500 jobs in preparation for being spun off from parent company Time Warner.
From the Wall Street Journal:
AOL Inc. plans to cut its work force by about a third, or roughly 2,500 jobs, as it prepares to spin off from Time Warner Inc. next month.
AOL Chief Executive Tim Armstrong will surrender his 2009 bonus, which was expected to be between $1.5 million and $4 million. ”That decision is a personal one and is not a sign for the future payout of the overall bonus plan for employees,” he said in an email to employees Thursday.
Mr. Armstrong is in the midst of a campaign to sell the Internet company to investors as a publicly traded business after years of strategic shifts and disappointing financial performances under Time Warner’s ownership. He has said the company will focus on expanding in online media content and branded display advertising as its dial-up Internet-access business declines.
The CEO began an effort to reduce the company’s cost structure four months ago.
AOL said it will seek volunteers for layoffs through Dec. 11 and will resort to involuntary layoffs if it doesn’t reach its target. It aims to cut annual operating costs by $300 million.
With these staff reductions, Tim Armstrong is repositioning AOL to become the largest single Google Adsense publisher – a super-sized version of Associated Content.
AssociatedContent.com is a new media company built on and monetized by Google Adsense Publishing.
Armstrong previously served as Chairman of the Board of the Associated Content.