AOL to Cut One-Third of Workforce

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Now that they've spun off from Time Warner, Internet giant AOL is slimming down. They're seeking to cut their workforce by one-third, or about 2,300 positions. They'll ask for about 2,500 voluntary layoffs, starting December 4. Over the following few months, if they don't achieve the desired number through voluntary means, they'll begin making involuntary cuts. The goal is to reduce operating costs by about $300 million a year. CEO Tim Armstrong, as a nod to this goal and an effort to maintain morale, told employees this morning that he won't be taking a bonus this year. Meanwhile, since Time Warner announced that it would jettison AOL in early December, its stock price has drifted upward 27 cents.

AOL Plans to Cut One-Third of Workforce, About 2,300 Employees [Bloomberg]