AOL Time Warner considers more cuts

LONDON - AOL Time Warner may have to make further job cuts if it wants to achieve the ambitious earnings targets it promised analysts when it announced its merger back in January 2000.

The media and internet giant has asked management to consider further job cuts, particularly in the music, film and magazine publishing units, in an effort to stem losses in the face of the global economic downturn.



AOL Time Warner announced 2,400 job cuts earlier this year, plus the closure of its Warner Bros Studio Stores, which led to the loss of 3,800 jobs.



Chief executive Gerald Levin indicated last month that he was beginning to see an end to the fall in advertising revenues, although he did not believe there was an upturn in sight yet.



AOL Time Warner will announce its second-quarter results next week. It expects revenues to be up 30% year on year to $40bn (£28.4bn).



The company, however, does not rely totally on advertising revenues for its income as its flagship ISP America Online is based on a subscription model.



The company said on Wednesday that it is not contemplating any "significant lay-offs".



Staff recommends

AOL Time Warner

Read more