AOL to downsize workforce by 20 pc resulting in 2000 layoffs

November 14th, 2007 - 2:18 am ICT by admin  
AOL, a subsidiary of Time Warner, is retrenching jobs as it shifts from a subscription-based business to one based on advertisements, reported.

Time Warner has posted strong earnings, but AOL has been a blemish on the balance sheet, as it lost 1.1 million subscribers in the second quarter and overall revenue dropped by 38 per cent.

“AOL has faced some formidable integration issues, owing partly to the fact that nearly half of its employees, including top management, were based in Virginia. Recently, the company relocated top brass and its official headquarters to Gotham,” the website reported.

“We’re only a year and a month into our transformation, and the turnaround has been dramatic,” topper Randy Falco told the company staff.

“We’re now in a position to win as an advertising-supported business. We have a bright future as a company if we can execute on this vision,” he added.

Time Warner shares fell one per cent, closing at 18.79 dollars on a day of general market declines. (ANI)

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