Not confirmed, but we are hearing that Time Warner’s AOL (TWX) is considering firing 20%-25% of all employees worldwide. The logic: Last quarter’s advertising weakness was not an aberration, and the only way the company can preserve its operating income is to drastically cut expenses. AOL declined to comment.
Whatever the exact percentage, these cuts would go way beyond the oft-discussed shuttering of the new iteration of Netscape, kids’ sites, etc. Key employees have reportedly been summoned to important meetings in Dulles this week without being told the subject of the meetings. Know more? Please tell us ([email protected]).
UPDATE: In the next instalment of this breaking story, we run the numbers.