AOL May Cut Costs by $100 Million
Troubled media giant AOL Time Warner Inc. plans to cut at least $100 million in operating expenses in its Internet unit because of a sharp drop in advertising revenue and a shift in strategy, the Washington Post reported. Citing anonymous sources, the Post said AOL plans to slash hundreds of jobs at the Internet unit’s Northern Virginia headquarters because it expects ad revenue to drop 50% next year.
Vice Chairman Joseph A. Ripp said the America Online service, which connects 35 million subscribers to the Internet, will face cuts in all divisions, including reduced computer network expenses and layoffs in New York, California and Ohio, sources said.
AOL has struggled amid a federal investigation into its accounting practices.
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