AOL Announced Widespread Cutbacks

The Internet Service Provider AOL has announced today it is cutting back on around 2,000 staff internationally to aid a redefinition of its business focus within the online media and advertising sector to provide greater long term dynamic stability.

The company has traditionally been associated with internet services such as physical connection of businesses and consumer browsers. However the last few years have seen it somewhat marginalised within that market, particularly internationally, and as a result it has turned to its more sustainable media operation.

AOL have sustained a drop of around 60% in customer numbers within its internet subscriptions division since 2002, at a time where it has been investing increasing resources into building and leveraging digital media assets. As a result it has announced that a slimdown is on the way to consolidate its operation, at the expense of 2,000 employees worldwide.

Of the 2,000 jobs today axed, 1,200 of those positions are thought to be US based, with the majority of those going from its world headquarters in Virginia. The remaining 800 posts will go from key premises across the globe, as the company looks to realign its business model over the coming months.

The news comes just one year after AOL axed over 5,000 employees in its customer services divisions, representing a substantial change in the dynamics of the organisation as it seeks to make further acquisitions within the online media sphere.

It is hoped that the freed up funds from the wage bill will help with the overall management restructure, and indeed go towards offsetting future acquisitions of valuable media assets for the company within its core sectors.

AOL, owned by parent AOLTimeWarner, has grown to become one of the world’s global media companies, with a focus on advertising revenues from online platforms.

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