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Latest NewsEconomics, government & businessJob creation and losses

Internet company AOL to cut 2,000 jobs worldwide in a bid to refocus on online advertising

by Gareth Vorster 17 Oct 2007
by Gareth Vorster 17 Oct 2007

US-based internet company AOL is to axe 2,000 jobs worldwide in an attempt to refocus on online advertising.

About 1,200 jobs will be shed in the US, including 750 posts at its headquarters in Virginia. The remaining 800 cuts will be spread across its operations around the world, including the UK, and should be completed by the end of the year.

The latest job cuts – accounting for 20% of the firm’s workforce – follow an announcement in August last year that AOL would cut 5,000 jobs in a bid to boost profits. It included 3,000 staff at its European divisions, including the UK, France and Germany.

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AOL is in the process of moving from providing internet access to paying subscribers, to selling online advertising.

Randy Falco, chief executive at AOL, said: “This realignment will allow us to increase investment in high-growth areas of the company while scaling back in areas with less growth potential or those that are not core to our business.”

Gareth Vorster

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