AOL to reduce workforce by 2,000
Wednesday, 17 October 2007
Internet firm AOL is to shrink its workforce further as it refocuses its business on online advertising, cutting 2,000 jobs worldwide.
About 1,200 jobs are going at its US operation - including 750 at its Virginia headquarters - while a further 800 foreign posts will disappear.
AOL said the changes would allow it to prioritise investment in key areas.
AOL is overhauling its business to reflect the shift in revenues from internet subscriptions to advertising.
The number of people paying to subscribe to the internet through AOL has fallen 60 per cent in the last five years.
To counteract this, the firm has moved to improve interactive content and other services to customers through advertising-funded initiatives.
The latest job cuts, accounting for 20 per cent of AOL's workforce, come on top of the 5,000 positions in marketing and customer services jettisoned last year.
About 1,200 jobs are going at its US operation - including 750 at its Virginia headquarters - while a further 800 foreign posts will disappear.
AOL said the changes would allow it to prioritise investment in key areas.
AOL is overhauling its business to reflect the shift in revenues from internet subscriptions to advertising.
The number of people paying to subscribe to the internet through AOL has fallen 60 per cent in the last five years.
To counteract this, the firm has moved to improve interactive content and other services to customers through advertising-funded initiatives.
The latest job cuts, accounting for 20 per cent of AOL's workforce, come on top of the 5,000 positions in marketing and customer services jettisoned last year.