AOL is looking to cut more than a third of its work force as it prepares to spin off from Time Warner next month. AOL, which now employs 6,900 workers, is asking for 2,500 volunteers to accept buyouts and plans to resort to layoffs if it does not get enough people. The voluntary offer is open to all employees from 4th – 11th December. Time Warner, the New York media conglomerate, plans to spin AOL off as a separate company, AOL Inc., on Dec. 9.
AOL hopes to trim annual costs by about $300m. The job cuts still need approval from the new AOL board.
The company has not specified which parts of AOL would be most affected by the job cuts.
The company is based in New York but also has major operations in Northern Virginia.
AOL’ has struggled to compete with other online media companies sinces is dial-up heydays in the early 2000s.
The company already had shed thousands of jobs as it pared down that unit to focus more on producing content and serving advertising, away from its traditional Internet access business.
Time Warner has said that AOL will take about $200 million in charges for severance and other costs related to the restructuring.