Report: AOL to cut 700 jobs
America Online Inc. (AOL) plans to lay off 700 employees, about 5 percent of its U.S. workforce, by the end of the year, several news organizations reported Tuesday.
Most of the layoffs will be at AOL's Dulles, Virginia, headquarters, according to the Washington Post, which said some employees have already been warned of the coming cuts.
An AOL spokesman declined comment. AOL's corporate parent, Time Warner Inc., is scheduled to report its third-quarter results Wednesday morning.
AOL has struggled to maintain its subscriber base, as rivals cut access costs and telephone and cable companies compete for customers with dedicated ISPs (Internet service providers). As of June 30, the end of Time Warner's second quarter, AOL had 23.4 million subscribers, down 668,000 from its total a year earlier. The unit has eked out operating income growth in the first two quarters of 2004 despite essentially flat revenue.
Late last year, AOL cut 450 jobs in California, where it closed offices in San Francisco and San Diego.