AOL have asked their employees to volunteer for redundancy packages as they need to remove 2,500 staff before the end of the year.
Parent company Time Warner plan to set AOL adrift in December. They have told their employees that the offers for redundancy packages will remain open between 4th of December and 11th of December and by making the staff cuts they want to save $300 million in annual overheads however the companies board of directors have yet to approve the sackings.
When AOL merged with Time Warner in 2000 it cost a ridiculous amount of money – in excess of $160bn. Time Warner are playing hard ball and announced that AOL would handle the $200 million severance bill costs as well as the additional costs of restructuring.