NEW YORK – Time Warner Inc.’s AOL said on Wednesday it has completed the bulk of a plan to reduce its work force by 5,000 employees, or 26 percent, as part of a wholesale restructuring of the online unit’s business model.
AOL declined to give details on where the job cuts were made or how many are in the current round.
AOL said in early August that its global work force of 19,000 would shrink by 5,000 employees from layoffs and transfers of workers to new companies. At the time, it employed about 3,000 people in Europe, where it has now sold off most of its Internet access businesses. It is unclear how many employees in Europe were retained by the company.
“The bulk of employee reductions we announced in August will have been completed,” an AOL spokesman said. Employees affected by the latest round of cuts are being notified today.
AOL, once the biggest U.S. provider of Internet dial-up services, decided earlier this year to give away most of its services for free and stop marketing its dial-up service. The move was designed to boost online advertising sales, which have increased 46 percent in the third quarter.
The company laid off about 2,200 employees in the United States in October and December after shutting down three call centers. It also sold one call center, affecting about 400 employees.
The latest round of layoffs comes after the November appointment of media industry veteran Randy Falco, former president of NBC Universal Television Group, as AOL’s new chairman and chief executive.