AOL to cut 5,000 jobs

About 26 percent of company's work force will be laid off as a result of restructuring.

Some 5,000 AOL employees, or about 26 percent of the company's 19,000-person work force, will lose their jobs within six months as a result of restructuring, Time Warner's AOL online division on Thursday.

"At a company meeting this morning, Jon Miller (AOL CEO) told AOL's worldwide work force of 19,000 people that within six months, it was likely that around 5,000 employees would no longer be with the company," AOL said in a statement.

Time Warner on Wednesday announced that the long-struggling AOL plans to make e-mail, instant messaging and other services available at no cost to users with broadband Internet access. The offering marks yet another transition for the venerable Internet service as it tries to move on from an era of dial-up access and subscription-based revenue.

AOL, which is in the process of selling its European Internet access business, employs about 3,000 employees in its access business in Europe, one source said.

Story Copyright © 2006 Reuters Limited. All rights reserved.

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