Recent press reports suggest that AOL Time Warner is to cut more jobs within its America Online division in Virginia. The Wall Street Journal reports that the media giant is struggling to meet financial targets in the current advertising climate. Last month the company reported lower than anticipated revenue growth and AOL Chief Executive Gerald Levin said he was “making cost management a permanent way of life”.
The possibility of future lay offs was not precluded and hints were made that end of year targets may not be met. AOL recently raised its subscription rates in order to try to and meet its $40 billion revenue target for 2001.
These cutbacks, expected to involve hundreds of employees, will be the second round of layoffs within the division this year. At the time of the merger between America Online and Time Warner in January, 725 workers at the 16,000-strong operation were laid off as part of a companywide cutback of more than 2,000 jobs.
