AOL to Layoff Over 25% of it’s Workforce

AOL announced today that it is laying off over 25% of their employees, 5000 of it’s 19,000 employees worldwide, and they also announced they are planning on selling the internet access businesses in France, Germany and the United Kingdom. AOL currently has 3,000 access employees in Europe. This is a result of them giving away email access for broadband customers, those same customers who were paying $26 dollars a month will now get it free.

But massive layoffs around the world are expected as AOL stops actively marketing its dial-up services in the United States and reduces its need for customer-support centers.

Employees were informed of the work force plans at a companywide meeting and webcast Thursday. Specific notifications are expected by October.

Layoffs had been anticipated. In announcing AOL’s strategy shift Wednesday, Time Warner said it expected to spend $250 million to $350 million through 2007 to implement the changes, about half of that for employee severance.

The cuts follow several rounds in recent years, including about 1,300 customer-service jobs announced in May. AOL currently employs 19,000 around the world. Source: Yahoo News

Millions of customers are expected to stop paying AOL for access to their email, as they look to stop the steady decline of subscribers in the US and abroad. AOL has already entered into exclusive negotiations with Neuf Cegetel for their French internet subscribers.

Posted by Jimmy Daniels Posted in: AOL, Internet Access, Layoffs No Comments » August 2006