AOL has not been having a happy new year. Continuing an effort that began late last year, the newly independent web giant will lay off 1,200 workers this week as it tries to reduce its work force by one-third.
Close to 1,100 workers accepted buyout offers from AOL, but the company wants to cut 2,500 in total, according to The New York Times. The cuts are part of a major cost-cutting initiative from AOL CEO Tim Armstrong, who wants to trim the company down and focus on important areas, such as content and advertising.
Things aren’t expected to get much easier for AOL after the layoffs either. J.P. Morgan analyst Imran Khan expects AOL will have a fairly rough year as it tries to distance itself from former selling practices that undervalued its inventory.
source: iMedia Connection