Following a recent spin off from Time Warner Inc (official Dec. 9th)., and an independent reentrance to the market, AOL plans to cut one-third of its 6,9000 person work force over the coming months.
AOL will institute a voluntary layoff program beginning in early December in the hopes of finding 2,500 volunteers. If the voluntary exits are insufficient, AOL will begin the firing process.
AOL was recently valued at $3.4 billion after being released from Time Warner Inc., who they purchased in 2001. Shareholders in Time Warner received one share of AOL for every 11 shares held in Time Warner.
Reeling from the break and suffering a 50 percent drop in advertising revenue, AOL is now endeavoring to minimize its operating costs by roughly $300 million annually.
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