AOL Set to Cut Up to 1/3 of Staff

By Kiran Aditham 

What’s been talked about for months will soon come to fruition as AOL plans to offer a voluntary buyout program to as many as 2,500 employees starting December 4th and through December 11th. The program coincides with the the one-time online giant’s Dec. 9th spinoff from Time Warner, which acquired AOL in 2001 but could never really make it flourish as an ad-driven unit. If the buyout program doesn’t work to achieve the layoff quota, involuntary cuts will be necessary according to MarketWatch.

In an email to employees which was obtained by Dow Jones Newswires, CEO Tim Armstrong said his decision to forgo his 7-figure bonus this year “…is a personal one and is not a sign for the future payout of the overall bonus plan for employees.”

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