America Online Inc. yesterday cut about 750 employees, mostly at the Internet firms Northern Virginia headquarters, as part of renewed efforts to slash costs due to mounting subscriber losses. The personnel cuts at the struggling online firms headquarters followed smaller workforce reductions and other cost savings. The latest cuts include more senior-level AOL executives — including a number at the vice president level — than in the past.
But with the loss of subscribers continuing, and pressure from parent Time Warner Inc. for the AOL division to keep generating about $1 billion annually in cash, America Online was forced to eliminate about 7 percent of its workforce in Northern Virginia. The cuts would save the company an estimated $75 million next year, officials said.
News source: MSNBC