14 DAY TRIAL // AOL is moving forward with the massive layoff plans it has been preparing for months now. Project Everest, as it is being referred to internally, has been in the making since shortly after Tim Armstrong took over the company. The first major wave came late last year when AOL asked employees, which were offered buyouts, to volunteer to leave the company. AOL was looking for 2,500 job cuts and it apparently got only 1,100 volunteers, so now it's moving to phase two, the mandatory eliminations.
In an internal memo to HR staff, AOL made the announcement that it was proceeding with involuntary layoffs. "In November, we announced that the company would take a $200 million charge and that we planned to decrease the size of our global workforce by one-third. Late last year, we offered Voluntary Separation Program to enable employees to decide what was in their best personal and professional interest," the memo read.
AOL is looking to shed some weight as it struggles to get back on its feet and to restructure its business. There is a new focus on content and taking advantage of the homepage, but less crucial products are being sidelined. As a part of the cost cutting measures, it is also significantly reducing the size of its staff particularly outside the US.
"The next phase of our restructuring plan will include an involuntary layoff. Our process internationally varies by country and is subject to local laws.. [M]eetings have already taken place in the UK, Germany and France, and we announced plans to shut down many of our offices in Europe, beginning with those in Spain and Sweden," the memo also said. "In the United States, we will begin notifying a limited number of individuals impacted by the involuntary layoff today [January 11, 2010]."
Some 1,200 to 1,400 people are expected to be let go this week, according to several reports, though AOL doesn't clearly state if it plans to go through and reach the initial goal of 2,500 people all in one go. As things move forward and AOL continues to shape itself after the recent spin-off from Time Warner, it is expected that the company will also sell some of its less successful products.