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