Our comments and trackback policy You Link We Follow, You Comment We Promote

After denying rumors about selling off Bebo, AOL has taken it as an opportunity to layoff 700 of its employees and this is no rumor. The layoffs are a part of reformation to be done in AOL in the light of failing economy and will also be followed by ceasing up pay increases. CEO Randy Falco in a memo sent to employees, stated:

Part of this will involve consolidating groups to gain efficiencies that will unfortunately lead to head-count reductions. We anticipate this will result in a net reduction of our workforce of up to 10% over the next several quarters – and we will attempt to finalize all domestic actions by the end of March. Reducing our workforce is never easy….To further keep employment costs down, we will also forgo merit pay increases in 2009. This is a painful decision, but one that many companies have prudently taken to help minimize the number of layoffs they have to make.