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Struggling AOL to Take 2,000 Jobs Offline

Subscriber losses prompt Time Warner to trim workforce 20 percent

By Jim O'Neill,  Newser User

Posted Oct 15, 2007 1:22 PM CDT

(Newser) – Internet icon AOL will pink slip 2,000 workers tomorrow—1,200 from the US—as the once-dominant service provider tries to re-energize its business. In August corporate parent Time-Warner announced that AOL had lost 1.1 million paying subscribers, and reported second-quarter sales of $1.3 billion, a 38% drop from a year ago. Last year, the company cut 5,000 jobs.

The reductions should allow AOL to focus on high-growth areas, mainly online advertising,  Bloomberg reports. Time Warner is also moving AOL's headquarters to New York from Dulles, Va., with plans to form a network to help advertisers buy online ads. TW shares fell slightly to $18.85 this morning in NYSE trading; shares are down 13% this year.

(FILES) This 12 January 2001 file photo shows the AOL Time Warner...
(FILES) This 12 January 2001 file photo shows the AOL Time Warner...   (Getty Images (by Event))
Randy Falco, AOL's Chairman and CEO, speaks at the AOL First Look event in New York, Tuesday, April 17, 2007.  AOL held the event to announce their new programming, products and advertising strategies.  (AP Photo/Seth Wenig)
Randy Falco, AOL's Chairman and CEO, speaks at the AOL "First Look" event in New York, Tuesday, April 17, 2007. AOL held the event to announce their new programming, products and advertising strategies....   (Associated Press)
A sculpture rests on a plaza in front of an office building, known by its address as 770 Broadway, on Monday, Sept. 17, 2007 in New York. Time Warner Inc. said Monday its AOL online unit plans to move its headquarters to the New York office building from Dulles, Va....
A sculpture rests on a plaza in front of an office building, known by its address as 770 Broadway, on Monday, Sept. 17, 2007 in New York. Time Warner Inc. said Monday its AOL online unit plans to move...   (Associated Press)
The President and ChIEf Operating Officer of America Online ...
The President and ChIEf Operating Officer of America Online ...   (Getty Images)
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