AOL plans to slash a third of its workforce will lead to a significant reduction in UK jobs, as the Internet media giant looks to cut 1,200 jobs worldwide. AOL, which spun of from Time Warner last month, announced in November it would be cutting 2,300 jobs around the world.
Since then, 1,100 employees have taken voluntary redundancies. AOL still needs to cut some 1,200 jobs to reach its goal of slashing its workforce by a third. In a statement, AOL said it would be announcing redundancies in the US tomorrow, and had begun meeting with European employees.
AOL said it planned to shut down “many” offices across Europe, starting with locations in Spain and Sweden, followed by Germany and France. It will also close an office in Seattle, Washington.
Details were scarce regarding the exact number of jobs to be cut in the UK, but AOL said: “We will be significantly reducing our UK staff, but will continue to have a robust advertising operation as well as a consumer offering.”
The statement added: “Ireland will remain a core technology development centre for the company.”
AOL France, which has around 100 employees, “will fulfil its commitments toward its clients, employees and suppliers,” an AOL spokesman said.
In Germany, AOL will close its offices in Hamburg, Duesseldorf, Frankfurt and Munich, cutting 140 jobs, another spokesman said.
AOL, which employed 19,000 people in 2006, will have 4,400 employees after the restructuring plan is completed.
The company is currently the number four gateway to the Web after Google, Microsoft and Yahoo, while its dial-up Internet access business has been gradually supplanted by high-speed broadband services.
Time Warner combined with America Online in 2001 at the height of the dotcom boom with AOL using its inflated stock as currency for the transaction.
Time Warner was forced in 2002 to massively write down the value of AOL and the AOL name was removed from the group’s corporate title in 2003.
AOL, formerly known as America Online, became a separate traded company on December 10.