AOL has announced that it will be laying off 1,200 employees as it failed to meet its target of 2,300 – or a third of total employees in the company – in reducing its workforce, as many refused to accept buyouts. According to spokeswoman Tricia Primrose, only 1,100 volunteered to leave the company. The cuts affect both its US and European operations; and layoffs are set to start today, though most will occur on Wednesday.
Cuts include shutting offices in Spain and Sweden, though it still have a presence in Sweden via Adtech AG. Other than that, the cuts have not been broken down, but is expected that many of the cuts could come from under-performing sites and its dial-up division.
At the height of the dot-com boom, AOL bought media conglomerate Time Warner, but that ended to be a disastrous merger as the merged company dropped AOL from its name, and after years of decline in its dial-up business, decided to revamp its business model to a content company – which has turned to be successful, as it owns popular blogs Engadget, Download Squad and Joystiq. Thanks to the acquisition of Weblogs Inc, the company has used the blogging technology to power its massive content network. AOL was spun off by Time Warner in December last year.