By Associated Press
Friday, November 13, 2009
New regulatory filings suggest that more layoffs could be coming at AOL as the Internet company separates from Time Warner by the end of the year.
In a Securities and Exchange Commission filing Thursday, Time Warner said AOL will log up to $200 million in "additional restructuring charges" from the date of the spinoff through the first half of 2010. A spinoff date has not been announced, but is planned for the current quarter.
AOL said in a separate filing this week that the charges would be for restructuring to cut costs and streamline operations. The company said it might also be closing down or making cuts to some of its operations outside the United States.
AOL said it recorded $10.2 million in charges related to job cuts and $82.9 million related to facility closures in the third quarter. The company expects $20 million more in restructuring charges this year. Those numbers aren't included in the newly announced charges.
AOL, which has headquarters in New York with major operations in Dulles, has been expected to announce a large restructuring plan as it separates from Time Warner.
An AOL spokesman declined to comment.
In January, AOL said it would cut up to 700 jobs, or about 10 percent of its workforce, in an effort to lower costs. The company said this week that it cut another 100 jobs across the company. It currently has about 6,900 employees.
Time Warner, which was bought by AOL in 2001, said in May that it would spin AOL off after years of trying unsuccessfully to integrate the two companies. AOL's Internet-access business has long been fading, while efforts to derive more revenue from online advertising have encountered difficulties.