AOL to cut 20% of its jobs
AOL Inc. is planning to cut its workforce by about 20%, or more than 900 of the 5,000 employees it has on its payroll worldwide.
The job cuts are part of a restructuring aimed at increasing revenue and reflect the integration of operations with the Huffington Post, said Graham James, an AOL spokesman.
AOL’s chief executive, Tim Armstrong, announced the planned job reductions Thursday in an e-mail to employees.
In the U.S., about 200 jobs will be cut, most of them in AOL’s offices in New York and Dulles, Va., James said. About 700 jobs will be cut in India, he said.
On Monday, AOL closed its $315-million purchase of the Huffington Post, a news website that both aggregates news from other outlets and produces original content. Its stock fell to $19.26 that day, then an all-time low. AOL, one of the first major Internet portals that helped turn e-mail into a ubiquitous form of communication, has seen its revenue decline the last four consecutive quarters.
On Thursday, AOL shares fell 34 cents, or 1.8%, to $19, a new low.
