Job cuts loom at AOL – report
Workers at AOL Time Warner's Internet division are bracing themselves for a fresh round of job cuts.
AOL is looking to trim around a $100m from its operation and, according to the Wall Street Journal, that means hundreds of job cuts.
It seems the brunt of the cutbacks could be centred on AOL's HQ in the US although all locations could be hit. No department is expected to escape the cull, accoring to reports.
Earlier this week AOL warned that revenues for 2003 are expected to remain flat and that the Internet division of AOL Time Warner is unlikely to deliver solid growth until 2004.
It predicted that sales in advertising and ecommerce would slump by up to half but maintains this fall will be offset by an increase in subscription revenues.
As part of this week's briefing it emerged that AOL Europe - made up primarily of the UK, France and Germany - is expected to generate around $1.2bn in revenues this year - almost double what it made two years ago.
It was also reported that AOL UK has become the first standalone AOL service outside of the US to be EBITDA-positive generating revenues of around 500m (£320m). ®