AOL-Time Warner is looking to lay off around 2,000 staff as part of a restructuring and cost cutting exercise, according to reports.
BBC News reports that, less than a week after laying off 400 employees at CNN, the media giant is planning to dismiss approximately 2,000 more staff. A further 3,800 employees may be laid off if the group "pursues plans to sell or close its Warner Brothers retail operations", the BBC claims.
The Industry Standard confirms these reports, adding that the company must convince analysts that it is capable of making serious cost savings. It is scheduled to meet with analysts next week to argue its case, in an attempt to bolster investor confidence.
Savings In its bid to merge, the two companies promised to deliver $1 billion of savings – delivered through cost cutting and new product sales. The company has about 85,000 employees and revenues in the region of $40 billion – based on the revenues of the two companies before the merger.
It is thought the group has been forced to turn to cost-cutting and staff lay-offs due to the softening of Internet business in the last year. Declining advertizing sales, and worries of an economic slowdown have also affected the companies decision.
As we go to press, Polly Scambler, AOL UK's public relations representative denied that job losses were likely for the UK branch of the company.
"It's a US story," she said: "In the UK we are extremely busy, and we are enjoying major growth."
In a word of reassurance to AOL's UK staff, she said: "We anticipate no job losses at this time."