AOL is slashing staff in preparation for the new year. The recent spin off from Time Warner Inc apparently came with a few conditions, and restructuring was one. Unfortunately, in this case restructuring means that a significant portion of AOL’s workforce is being kicked to the curb.
According to the official Form 8-K filed by AOL with the United States Securities and Exchange Commission:
The Restructuring will include the reduction of approximately a third of the Company’s current employee base, which will be conducted on a voluntary and involuntary basis. As of November 19, 2009, the Company employed approximately 7,000 people. As part of the Restructuring, the Company also intends to exit certain of its non-strategic business operations. Implementation of certain components of the Restructuring, including certain elements of the employee reductions and the exit of its non-strategic business operations, is subject to the satisfaction of applicable legal requirements.
The Company expects to incur restructuring charges of up to $200 million, the majority of which is expected to be incurred through the end of 2009, with the remainder expected to be incurred through the first half of 2010. Included in the total restructuring charges are up to $150 million of charges related to employee severance and benefit costs and up to $50 million of charges related to facility closures and other costs. The Company expects substantially all of these charges to result in future cash expenditures.
Looks like former AOL employees will be flooding into the job market come the first of the year. No word on what type of severance packages were included.