AOL Time Warner will cut jobs and reduce operating expenses within its online division due to anticipated drops in online ad spending, according to The Washington Post. The cuts will amount to at least $100 million.
An article in the paper’s business section indicated the company sees a 50% drop in online advertising revenue during 2003. AOL’s financial strategy going forward will focus on increasing revenue from existing customers, rather than generating new subscribers, according to the Post. AOL currently provides Internet access to 35 million subscribers.
Expense cuts will likely include layoffs amounting to several hundred individuals, although the details of these have not been hammered out yet, the Post said. The division currently employs 18,000 individuals in Virginia, California, New York and Ohio.
