AOL to lay off 20 percent of workforce
AOL sends e-mail to U.S. employees saying on Tuesday it will begin cutting its worldwide workforce by 2,000.
More bad news at AOL
The company will begin laying off 2,000 employees out of a global workforce of 10,000 on Tuesday, according to an internal company-wide e-mail obtained by former Merrill Lynch analyst Henry Blodget. An AOL representative confirmed the information.
In the e-mail sent to U.S. employees on Monday, AOL Chief Executive Randy Falco says that the layoffs are needed to keep the operations efficient as the company continues its realignment from a subscription-based ISP to an ad-supported Web company. And he promises "generous severance packages."
"So where is this taking AOL? Put simply, my vision for AOL is to build the largest and most sophisticated global advertising network while we grow the size and engagement of our worldwide audience," Falco writes. "We're only a year and a month into our transformation, and the turnaround has been dramatic. We're now in a position to win as an advertising-supported business. We have a bright future as a company if we can execute on this vision."