AOL Time Warner to Axe 2000 Staff

24 January 2001

Newly merged media titan AOL Time Warner is wasting no time in streamlining its organization, with the announcement of over 2,000 job losses.

The redundancies are spread over a number of internet and content divisions. The America Online division is cutting around 725 jobs (from a total of 15,000), mainly at its Virginia headquarters; Time Inc. magazines is shedding 400 (from 13,000); Warner Music Group about 600 (from 13,000); and Warner Bros film studio about 100 (from 11,000). A further 100 are also due to go at the merged group’s New York headquarters.

AOL chief operating officer Robert Pittman described the cuts as a means to “get the right organization and structure in place,” adding that executives “desperately wanted to avoid confusion and bureaucracy, because [when] you leave redundant people within the organization, no one knows who to go to.”

The announcement comes only a week after AOL Time Warner unit CNN revealed it would cut 400 people [WAMN: 18-Jan-01]. However, the group has stated that the new wave of job losses would be the last resulting from the merger.

News source: Wall Street Journal