AOL cuts at least 1,200 jobs in restructuring
America Online will cut at least 1,200 jobs in a restructuring effort, and AOL Time Warner will take a third-quarter charge of $100 million to $125 million as a result, the company announced.
AOL says the move will help AOLTW operate all of its divisions "in a converged, integrated way."
Under the restructuring, the company will create an Interactive Services Group, headed by Jonathan Sacks; consolidate its Web brands into a Web Properties Group, headed by Jim Bankoff, which will comprise Netscape, CompuServe, Moviefone, MapQuest, ICQ and AOL Instant Messenger services; and set up the Interactive Marketing Group, headed by Robert Friedman, to focus on partner service.
The changes also include a new vertical markets group under AOL Interactive Services, headed by Donn Davis; expanding the role of its Broadband Group, headed by Audrey Weil, to drive interest in cable, DSL and satellite services; and continuing the AOL Anywhere unit, headed by Lisa Hook.
AOL says the restructuring entails eliminating about 1,200 jobs, plus another 500 job cuts at the Sun-Netscape Alliance.