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.