Too few people only 1,100 accepted the struggling companys voluntary buyout offer in December, so now its enacting 1,200 layoffs, New York-based AOL said on Monday.
The cuts come a month after AOL separated from Time Warner Inc. and started offering the buyout packages. Executives had banked on 2,500 employees taking severance deals before having to wield the layoffs axe.
AOL is spending $200 million on restructuring, hoping to redefine itself as a 21st Century content company, rather than a dial-up service provider. The cost cuts, of course, include job losses.
The spinoff and firings come a decade after AOL and Time Warner formed what is still the most expensive merger $350 billion in corporate history. The move can only be described as a complete fiasco. Investors and executives were counting on dial-up Internet access to become ubiquitous; instead, high-speed Web access soon was the norm, leaving dial-up almost as extinct as the dinosaur. Now, AOL is trying to rebrand and reinvent itself to what degree of success remains a question mark.