AOL Layoff rumours Remain rumours

tim armstrong

There’s a rumour going around that, in one of his video updates to employees, AOL CEO Tim Armstrong warned that long-expected layoffs will go down between November and February.

That timing makes sense to us, given that AOL plans to spin-off from Time Warner (TWX) in Q4 and will need to very quickly cut the corporate fat if it’s going to impress Wall Street on its own. We’ve estimated headcount will have to be trimmed by ~2,000.

But as much as the rumour sounds right, two sources who would know tell us it isn’t — technically. They say Armstrong hasn’t brought up layoffs in video updates to employees.

Obviously, that doesn’t mean the November to February timing mentioned in the rumours (which again, does make sense), won’t be coincidentally correct.

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