AOL is cutting another 1,200 jobs as it streamlines its workforce following the merger with Time Warner.
The job cuts, which represent 8 per cent of the workforce, are also partly due to the slowdown in the advertising sector. It is the second wave of cuts at AOL since its merger with Time Warner in January.
AOL had already cut 725 jobs in January, shortly after the merger, as part of a company-wide shake-up that cost more than 2,000 jobs.
An extra 500 jobs are also being cut at iPlanet, a software maker AOL co-owns with Sun Microsystems that employs 3,000 people.
AOL chief executive Mr Barry Schuler said the revamp will split AOL into two main units, one focusing on web brands and another on the AOL service.
"If you look at the market overall, half of the consumers buy AOL and want the packaged offering, the other half is going into the web and doing their own thing," he said.
Mr Schuler said the revamp is driven mainly by a need to streamline AOL's internal structure. He said it is also needed to integrate the unit with the rest of AOL Time Warner and to respond to a slower market for online advertising.
PA