AOL Time Warner to shed over 2400 jobs

AOL Time Warner will lay off over 2400 people, or 3% of the work force of the newly merged company, in an attempt to streamline its operations, a company spokesman said this week.

          AOL Time Warner will lay off over 2400 people, or 3% of the work force of the newly merged company, in an attempt to streamline its operations, a company spokesman said this week.

          More than 2000 employees will be let go or offered early retirement to remove redundancies, "sharpen focus [and] strengthen the integration of the company," according to a company spokesman. When added to the 400 cut from CNN News Group last week, total layoffs top 2400.

          Most of the jobs cuts, however, will be in the America Online (AOL) division of the company in Virginia, which will lose 725 jobs.

          Warner Music Group will lose the second highest number of employees, 600, through early retirement and attrition. Cuts to the music division will come from the business side, not the creative, according to a company spokesman.

          Time will lose 400 jobs through the merger of a customer fulfillment centre in Birmingham, Alabama with an existing one in Tampa, Florida.

          Warner Brothers online will see around 100 job cuts as its Entertaindom website is merged into other Warner Brothers online sites. New Line Cinema will layoff 100 employees, as will AOL-Time Warner corporate.

          HBO, the WB television network and the Turner Broadcasting System division (encompassing TNT and TBS, among other cable channels), however, will face no layoffs.

          There are also plans to sell or close the Warner Brothers retail stores, though no definitive plans were yet available from the company. Daily Variety reported that the closure would result in 3800 layoffs.

          Furthermore, more job losses can be expected, according to the reports, though the company spokesman declined comment. But in a move that may cushion the blow for the remaining 82,500 AOL employees, that division will announce details of a stock-option grant today.

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