AOL to reduce work force by one-third
The Wall Street Journal reports: AOL told employees Thursday that it will ask for 2,500 volunteers to be laid off as part of a restructuring effort to reduce its workforce by one-third, according to a spokeswoman.
AOL Spokeswoman Tricia Primrose said the company's voluntary lay-off program will begin on Dec. 4 and run through Dec. 11. Meanwhile, AOL Chief Executive Tim Armstrong will surrender his 2009 bonus, which was expected in a range from $1.5 million to $4 million.
"We will need to do an involuntary layoff if we do not reach the target numbers through the voluntary option," said Primrose in an email. "We believe the voluntary program gives people more choice and decision-making ability instead of waiting for the final cost recommendations and involuntary layoffs."
AOL, which is being spun off by Time Warner Inc. (TWX), disclosed in a filing with the Securities and Exchange Commission that the restructuring is aimed at reducing its annual operating costs by $300 million. It employs roughly 6,900 people.
AOL Chief Executive Tim Armstrong is in the midst of a campaign to sell the company to investors as an independent, publicly-traded business after years of strategic shifts and disappointing financial performances under Time Warner's ownership.
AOL's restructuring is conditioned on the successful completion of the spin-off transaction with Time Warner, and it expects it to result in charges of up to $200 million in the first half of next year. The company said it will conduct lay-offs on a "voluntary and involuntary basis."
AOL Spokeswoman Tricia Primrose said the company's voluntary lay-off program will begin on Dec. 4 and run through Dec. 11. Meanwhile, AOL Chief Executive Tim Armstrong will surrender his 2009 bonus, which was expected in a range from $1.5 million to $4 million.
"We will need to do an involuntary layoff if we do not reach the target numbers through the voluntary option," said Primrose in an email. "We believe the voluntary program gives people more choice and decision-making ability instead of waiting for the final cost recommendations and involuntary layoffs."
AOL, which is being spun off by Time Warner Inc. (TWX), disclosed in a filing with the Securities and Exchange Commission that the restructuring is aimed at reducing its annual operating costs by $300 million. It employs roughly 6,900 people.
AOL Chief Executive Tim Armstrong is in the midst of a campaign to sell the company to investors as an independent, publicly-traded business after years of strategic shifts and disappointing financial performances under Time Warner's ownership.
AOL's restructuring is conditioned on the successful completion of the spin-off transaction with Time Warner, and it expects it to result in charges of up to $200 million in the first half of next year. The company said it will conduct lay-offs on a "voluntary and involuntary basis."
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