New York: Internet company AOL today said it
is planning to reduce one-third of its workforce, as part of
its cost cutting initiative.
The company today informed its employees of proposed
restructuring activities as part of its continuing cost
reduction initiatives, AOL said in a regulatory filing with
the US Security and Exchange Commission.
"The restructuring is conditioned upon the successful
completion of the company's previously announced spin-off from
Time Warner Inc," the filing added.
The layoff of one-third of its workforce would mean 2,500
job losses, as the current employee base of AOL is reportedly
about 6,900 employees.
As part of the current restructuring plan the company
would reduce around a third of its current employee base
"which will be conducted on a voluntary and involuntary
basis", AOL said.
As part of this said restructuring plan AOL expects to
incur restructuring charges of up to USD 200 million, AOL said
adding that the said restructuring is likely to reduce
operating costs by about USD 300 million.
Bureau Report
First Published: Thursday, November 19, 2009, 23:08