AOL cuts 300 jobs as strategy shift begins

America Online cut 300 jobs this week as part of its reorganisation under new chief Jon Miller, a company spokesman confirmed.

America Online cut 300 jobs this week as part of its reorganisation under new chief Jon Miller, a company spokesman confirmed.

Half of the cuts were in the company's Northern Virginia offices, with 60 in California and the remaining in other AOL facilities, the spokesman said.

Although the job cuts represent just 1.5% of AOL's 18,000-person workforce, they mark the beginning of what is expected to be a series of layoffs aimed at restructuring the ISP as it implements a new strategy laid out by company executives last week.

Faced with slowed subscriber growth and plummeting ad revenue, AOL has been trying to shore up its business by focusing on broadband initiatives and exclusive content.

Many of the jobs cut on Wednesday were technical posts, such as software developers and engineers, while other reductions were in administrative positions. No job cuts were reported in AOL's broadband unit.

Miller emphasised that cost reductions were in the works, especially given that the company forecast that ad revenue will fall by nearly half next year as the market continues to falter.

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