Friday, August 4, 2006
AOL, which is in the midst of a major transformation to an ad-supported Internet service provider, reportedly plans to cut 5,000 jobs worldwide.
The layoffs would occur over the next six months, as the company shifts its focus from its dial-up access service to broadband users who are a favorite target of advertisers. AOL has steadily loss subscribers to broadband over the last several years. As of June 30, the company had 17.7 million U.S. members, a decline of 976,000 from the prior quarter and 3.1 million from a year ago.
The layoff announcement was not unexpected, the newspaper said. On Wednesday, Time Warner said it expected to spend $250 million to $300 million through 2007 in making the changes at AOL. About half that amount was expected to pay for employee severance.
By: DocMemory
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