Monday, July 27, 2009

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AOL Tells Employees Job Cuts Possible After Review

AOL’s new Chief Executive Officer Tim Armstrong told employees today that job cuts are possible as he undertakes a 60-day review of the Internet company’s cost structure, a company spokeswoman said.

Armstrong said at a companywide meeting that he’s working on financial plans, and part of that process could include staff reductions, Tricia Primrose, a spokeswoman for AOL, said in an e-mail. She didn’t specify how many jobs may be eliminated.

After completing a 100-day review of AOL’s strategy, Armstrong said in an interview last week that he plans to overhaul advertising and develop more local Web sites to revive falling sales. Time Warner Inc. plans to spin off AOL, which employs about 7,000 people, into a separate, publicly traded company later this year.

Time Warner, based in New York, fell 30 cents to $27.58 at 4 p.m. in New York Stock Exchange composite trading. The shares have gained 24 percent this year. The possible cuts were reported earlier by Silicon Alley Insider.

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