AOL Announces Round Of Layoffs, Pay Freezes

More could be on the way

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The company that introduced many people to the Internet has gone into bunker mode.  AOL’s chairman and CEO, Randy Falco, announced layoffs, pay freezes, and another couple of drastic responses to the recession in a memo yesterday afternoon. 

Randy Falco
 Randy Falco – AOL CEO

Since Falco managed to write 878 words, we won’t repeat every sentence.  But the important disclosures started with his admission that AOL will be "consolidating groups to gain efficiencies that will unfortunately lead to head-count reductions.  We anticipate this will result in a net reduction of our workforce of up to 10% over the next several quarters – and we will attempt to finalize all domestic actions by the end of March."  So brace for a lot of job losses (perhaps 700) in the near future.

Then Falco continued, "To further keep employment costs down, we will also forgo merit pay increases in 2009."  And it sounds as if AOL’s remaining employees will lose some elbow room, too.  The company intends to give up a building in Mountain View and one floor of a structure in Los Angeles.

Finally, Falco described an ongoing review process that sounds as if it could lead to further cuts.

This obviously isn’t a great position for AOL to be in.  Fans should cross their fingers that its publishing, advertising, and social media efforts pay off in the near future.

AOL Announces Round Of Layoffs, Pay Freezes
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  • http://www.indiesurf.com Darren Tan

    It’s very normal for companies to lay off some workforce in today’s economic situation. This happens once every decade… just face it and learn to grow with it..

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