AOL Axing A Full Third Of Its Employees

 

NEW YORK, NY (November 20, 2009) – Tim Armstrong, the CEO of AOL, told employees Thursday that he's looking for up to "2,500 volunteers" to be fired in December. Armstrong is hoping that fully a third of the company's payroll will step forward and take buyouts, otherwise the AOL will have to ax people on its own.

The 6,900 person company, being spun off by Time Warner, would be left with a staff of 4,400. Armstrong has told investors through Security and Exchange Commission filings that AOL will spend up to $200 million in restructuring charges i the process of firing a third of its staff. AOL has already spent $83 million on separate restructuring charges during the first nine months of 2009, and parent company Time Warner has spent $100 million restructuring layoffs at Time Inc.

Headed by their vice president of global photography Cathaleen Curtiss, a long-time NPPA member, AOL's photography department employs as many as 40 people in the States and overseas. While no one knows, at this point, how many people may step forward as volunteers and how many may wait to only be let go later in the reduction process, some departments at AOL are anticipating losing as many as half of their current staff.

Award-winning photographs from the National Press Photographers Association's contests have been featured in AOL's Pixcetera Web site during the past year.

At AOL the voluntary layoff program begins December 4, and Armstrong said he's giving up his 2009 bonus of a reported $1.5 million. AOL says the cuts will drop annual operating expenses by $300 million. According to CNET Networks, AOL is also looking to sell of its ICQ messaging service and is considering dumping MapQuest and other assets.

The spin-off date for AOL from Time Warner is scheduled for December 9.

AOL's advertising revenue loss brought down Time Warner's profits over the past year, and according to the Los Angeles Times because of the advertising decline AOL's revenue fell 20 percent to $4.2 billion.

 

NPPA Marketplace

Join the NPPA

NPPA members receive a wide range of benefits, from educational opportunities to mentoring, exclusive discounts, insurance options, business tips, and much more.