AOL Reconsidering its Global Shared Services Scope
Time Warner Inc’s AOL is cutting 700 jobs (10% of its staff) as it tries to cope with the significant discount in advertising revenues. The main market affected is the US and changes will be finalised by the end of March.
Time Warner said in January that AOL had weaker-than-expected advertising sales in the fourth quarter, forcing a profit warning by the media conglomerate. UBS analyst Michael Morris said he is forecasting a 12% decline in AOL's fourth-quarter advertising sales.
In its cost-cutting efforts, the company is reviewing international operations and its global shared-services functions and is considering consolidating some domestic facilities as it moves corporate headquarters to New York from its hometown of Dulles, Virginia.
