American Online or AOL plans to cut one-third or 2,500 jobs by December 9th. The company would like to trim $300 million in annual costs as part of a spin-off from Time Warner Inc.
The scale backs will be voluntary and will begin on December 4th in hopes of seeking their target number of 2,500.
Reuters reports that the layoffs would result in restructuring charges of up to $200 million and that substantially all the charges would be incurred from the date of the spin-off through the first half of 2010.
AOL spokeswoman Tricia Primrose said, "We will need to do an involuntary layoff if we do not reach the target numbers through the voluntary option. We believe the voluntary program gives people more choice and decision-making ability instead of waiting for the final cost recommendations and involuntary layoffs."
AOL will become a separate traded company by December 10th. Time Warner told
Yahoo that, as an independent company, AOL will focus on growing its web brands and services as well as advertising the company.
Yahoo
reports, Time Warner merged with American Online in 2001 with AOL using its inflated stock as a currency for transaction. The merger turned sour when benefits promised to shareholders fell through.
