AOL has finally, formally acknowledged that it will be again be making huge staffing cuts, which will cost the company up to $200 million.
Earlier this week, AllThingsD’s Kara Swisher reported that AOL was planning to cut 1,000 jobs.
From a morale and fresh start perspective, the sooner the better.
All told, it sounds like the cuts would amount to about 1,500 employees, depending on the size of the buyout. Our estimate based on a back-of-the-envelope look at the numbers was 2,000. While you never want to root for more cuts, we just hope Tim [Armstrong] cuts deep enough that he and AOL never have to do this again.
In a filing to the SEC, AOL says:
In connection with these additional restructuring activities, AOL expects to incur additional restructuring charges of up to $200 million, substantially all of which are expected to be incurred from the date of the Spin-off through the first half of 2010. The Spin-off is expected to occur in the fourth quarter of 2009. The preliminary information statement is incomplete and subject to change, and Time Warner reserves the right not to complete the Spin-off.