AOL is to make redundant around 5,000 employees – more than a quarter of its current 19,000 head count.
The job losses will occur over the next six months, and will hit AOL operations worldwide, including a large number at AOL’s European operations.
Thousands of jobs have already been cut at the company over the last three years, as AOL has struggled to transform itself into a major broadband provider.
The company now plans to concentrate on offering free services like e-mail and instant messaging to help generate greater advertising revenue to its web portal business.
These services will also be marketed as an important element of its broadband package.
AOL is expected to sell its European internet access business.
Vote for your IT greats
Who have been the most influential people in IT in the past 40 years? The greatest organisations? The best hardware and software technologies? As part of Computer Weekly’s 40th anniversary celebrations, we are asking our readers who and what has really made a difference?
Vote now at: www.computerweekly.com/ITgreats