It won’t be a very merry Christmas for about 2,500 AOL employees come December when the company has announced they’ll be cutting nearly 2,500 employees.
AOL is preparing to split off from Time Warner who they purchased for $106 Billion in 2001 and forming a separately traded AOL stock option.
The cuts come at a time when the company is attempting to save $300 million a year through restructuring, while also using cuts in the form of $200 million in related charges.
The company will start with a voluntary layoff program on December 4th through December 11th too see what type of “buyout” interest they can generate, they will then begin firing employees if enough cuts have not been accepted.
AOL CEO Tim Armstrong emailed employees to let them know that he would skip his $1.5 million 2009 bonus in light of the layoffs.
AOL will start trading as a separate company on December 10th 2009, only one day after the “spin-off” date for the companies.
Posted on 20 November 2009 by | Author: James Johnson | Posted In: Business