Technology

AOL’s Online Unit Faces Major Layoffs

Internet access giant reacts to advertising slowdown.
CFO.com StaffAugust 13, 2001

Several hundred employees at the Dulles, Va. headquarters of AOL Time Warner’s Internet access unit could be laid off as early as Monday morning, according to The Wall Street Journal.

The pending layoffs will be the second round to hit the division this year. In January, 725 people from a total workforce of 15,000 were laid off as part of a companywide cutback of more than 2,000 jobs resulting from the completion of the merger between America Online and Time Warner.

According to The Journal, the layoffs come as the company is struggling to meet its financial targets in a weak advertising market. In July, AOL reported lower-than-expected revenue growth and hinted it might not meet its year-end figures. At that time, AOL Chief Executive Gerald Levin said he was “making cost management a permanent way of life” and didn’t exclude the possibility of future layoffs.

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