AOL to begin involuntary job cuts

After only 1,100 employees (it originally asked for 2,500 in November) voluntarily took an early severance package from the company as part of its $200 million restructuring effort, AOL's new CEO Tim Armstrong is keeping to his promise to enact involuntary job cuts.

As part of the latest round of cuts, AOL spokeswoman said in a Bloomberg article that the company shut down offices in Spain and Sweden, while the affected U.S. employees will officially leave the company this Wednesday, Jan. 13.

These latest cuts follow the Internet and media provider's announcement in November that it would reduce its 7,000-employees by almost one-third to shed $300 million from its annual operating costs. What's driving AOL-a name once synonymous with dial-up Internet access--is a 50 percent decrease in Q3 operating income as the result of slowing advertising sales.

For more:
- Bloomberg has this article

Related articles
AOL wants 2,500 employees to voluntarily resign
AOL's new chief cleans out the management house
AOL names Yahoo vet Garlinghouse to lead web, mobile
Time Warner Cable: No, we're not merging with Comcast
TWC's Q3 voice, Internet revenues up, while basic video falls

Suggested Articles

According to Synergy Research Group, as of the middle of this year, there are 541 hyperscale data centers with another 176 in the pipeline.

Due to increased connectivity demand into Asia-Pacific, Telstra is beefing up its network infrastructure in the U.S. by adding two points-of-presence.

Adtran is provisioning multi-gigabit speeds in rural Mississippi through the deployment of its XGS-PON technology.