Thursday, November 12th, 2009
AOL may lay off many as it expects up to $200M more in spinoff-related restructuring charges
SAN FRANCISCO - New regulatory filings suggest many more layoffs could be coming at AOL LLC as the Internet company separates from Time Warner Inc. by the end of the year.
In a Securities and Exchange Commission filing Thursday, Time Warner said AOL will log up to US$200 million in "additional restructuring charges" from the date of the spinoff through the first half of 2010. A spinoff date has not been announced, but is planned for sometime during the current quarter.
AOL said in a separate filing this week that the charges would be for restructuring to cut costs and streamline operations. The company said they might also be for closing down or making cuts to some of its operations outside the U.S.
AOL also said it recorded $10.2 million in charges related to job cuts and $82.9 million related to facility closures in the third quarter. The company expects $20 million more in restructuring charges this year. Those numbers aren't included in the newly announced charges.
AOL, which has headquarters in New York with major operations in Dulles, Va., has been expected to announce a larger restructuring plan as it separates from Time Warner.
AOL spokeswoman Tricia Primrose had no comment.
In January, AOL said it would cut up to 700 jobs, or about 10 per cent of its work force, in an effort to lower costs. The company said this week that it cut another 100 jobs across the company. It currently has about 6,900 employees.
Time Warner, which was initially purchased by AOL in 2001, said in May that it would spin AOL off after years of trying unsuccessfully to integrate the two companies. AOL's Internet access business has long been fading, while efforts to derive more revenue from online advertising have encountered difficulties.
