Feeds

AOL to slash 700 jobs - report

HQ cull

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

AOL is set to eliminate more than 700 jobs at its HQ in Northern Virginia, according to the Washingston Post. It reports that the cull, due in early December, is necessary as the internet giant continues to cut costs as it battles to cope with the slide in customer numbers. Although no formal announcement has yet been made, it seems that speculation is growing after staff at AOL were told to prepare themselves for a new round of job cuts.

In March AOL warned that the "significant" erosion of subscriber numbers looks set to continue as the internet giant faces stiffer competition from broadband and cheaper dial-up services. In its annual report filed with the US's Securities and Exchange Commission (SEC), AOL reported that the number of subscribers in the US fell by 2.2m in 2003, from 26.5m at the end of 2002 to 24.3m at the end of 2003.

AOL blamed the decline on an exodus of punters from its service and poor uptake to its marketing campaigns, as consumers opted for rival dial-up services or shifted to broadband instead.

Said the company in its report: "The AOL narrowband (or dial-up) service experienced significant declines in US subscribers, which is expected to continue. Driving this decrease was the continued industry-wide maturing of the premium narrowband business, which is expected to continue, as consumers migrate to high-speed broadband or lower-cost dial-up services."

In December last year AOL announced plans to axe 450 workers and close two offices in California in a move to trim its software development operation. ®

Related stories

Time Warner sprints ahead, AOL crawls
AOL warns of falling revs as punters flee service

Providing a secure and efficient Helpdesk

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.