AOL cuts more than 700 staff


AOL cuts more than 700 staff

Antony Savvas

AOL has cut more than 700 staff from it payroll, mainly in customer services.

The cull represents 4% of AOL’s workforce of almost 20,000 . The cuts are in response to a rapid fall in the number of AOL users who pay for dial-up internet access.

The company said the redundancies would help it restructure the business in response to changes in the internet market.

AOL is currently striving to become a major broadband supplier, although in the UK it has come to rely on reselling BT’s wholesale broadband services, which do not provide high margins.

The Time Warner-owned company is also seeking to generate a higher-margin business built on providing voice over IP services via its web portal.

AOL is still a major player in web advertising, but is struggling to match Google in the market.

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