Just days after closing its deal with the Huffington Post, AOL has confirmed that it will lay off hundreds of staffers.
A company spokesperson told CNET in a phone interview today that 200 people will be laid off in the U.S. The majority of those employees will come from the editorial side of AOL's operation, while the remaining employees are in other divisions. In addition, AOL will layoff 700 people in India. Approximately 300 of those people, however, will move to other companies and continue working on AOL support functions, like finance and operations.
The layoffs at AOL were prompted by the company's. Earlier this week, AOL closed the deal and with AOL Media and AOL Local to create the Huffington Post Media Group. Huffington Post founder Arianna Huffington heads up that division as president and editor in chief.
In the acquisition, AOL took on the publication's staffers, leading AOL to make room by laying off some of its employees. Even so, the company's editorial department will grow by a net of 17 people, thanks to the influx of Huffington Post employees, according to the spokesperson.
Looking ahead, AOL plans on expanding its editorial staff, the spokesperson said. However, in doing so, it will start moving away from a reliance on freelance journalists and hire more in-house editorial employees.
AOL's latest layoffs are another in a string of cutbacks in recent years. In 2007, the company 1,100 people chose to leave, prompting the company to lay off another 1,200 people last year.from its then 10,000-person-strong workforce. AOL started off 2009 by and then later in the year. Out of that group, approximately
AOL shares are down 5 cents to $19.29 following news of today's layoffs.