AOL is a giant on the decline, as the company is struggling through a reinvention of its strategy backbone as subscriber numbers have plummeted. Delivering a Pleiades of free services supported via advertising generated income translates into a major impact on the company's present 19,000 workforce.
AOL Chief Executive Officer Jonathan Miller has confirmed that a quarter
of its global work force will be shed in the upcoming six months. The 5,000 jobs planned for elimination at AOL are related to the massive customer support service and into its marketing division.
America Online will sacrifice its human resources in order to control the exodus of its customers to rivals Google, Yahoo and Microsoft that provide similar services for free. Shedding 26% of its workforce will put an estimated 1 billion dollars in the company's pockets as AOL means to jump start its profits as the subscriber basis has continuously diminished. An overall market performance is looking bleak for AOL as the company's stock is also dropping in value having lost 4.5% in 2006.
With AOL being hard at work to dispense of its European units, an estimated 3,500 jobs will be lost just on the continent, although the company stated that the workforce will be transitioned to the acquiring companies.