BBC

Tuesday, 21 August, 2001, 23:51 GMT 00:51 UK AOL cuts 1,200 jobs The internet and media giant AOL Time Warner has said it is cutting more than 1200 jobs at its AOL Internet unit.

The job cuts represent the third round of layoffs at the company since AOL and Time Warner completed their merger at the start of the year.

The internet unit said it would also cut a further 500 jobs as part of an alliance between Netscape and Sun Microsystems.

Cuts expected

The job cuts had been expected and are seen as necessary if AOL Time Warner is to hit its earnings target for this year.

Analysts expect the company to have suffered from the slowdown in the US economy and from reductions in advertising revenues.

In January the firm cut 2,400 jobs, and this summer said it would cut a further 3800 jobs by closing down its Warner Bros Studio Stores.

The company said this new set of job cuts meant it would take a charge in the third quarter of up to $125m.

Re-organisation

AOL said it would bring together all of its web brands into one unit.

The AOL Web Properties Group will cover Netscape, CompuServe, Moviefone, MapQuest and AOL Instant Messenger services.

The flagship AOL internet service will become part of a new AOL Interactive Services Group. This group will contain a section aimed at creating "new programming and cross-brand advertising and commerce opportunities" in areas such as music and entertainment.

AOL also said it would expand the role of its broadband group.

"This new organisation enables us to stay at the leading edge of the Internet's development and take full advantage of emerging growth opportunities in areas like broadband, online music and home networking" said AOL's chief executive Barry Schuler.

"In the seven months since the merger, we have continued to identify new ways to leverage shared resources across AOL Time Warner and now we are putting them to work" he added.

-- Anonymous, August 21, 2001