There are almost certainly large layoffs coming at AOL.
in connection with the company’s pending spinoff from Time Warner , AOL said it expects to take $200 million to cover “additional restructuring activities,” with all of the hit coming from from the date of the spin through the first half of 2010.
Here’s the key paragraph from the filing, which suggests that the restructuring moves the company has made so far pale compared to whatever it has in mind in the months ahead:
We undertook various restructuring activities in the first nine months of 2009 in an effort to better align our cost structure with our revenues. As a result, for the three and nine months ended September 30, 2009, we incurred restructuring charges of $10.2 million and $82.9 million, respectively, related to involuntary employee terminations and facility closures. We currently expect to incur up to $20 million of additional restructuring charges through the spin-off, which is anticipated to occur in the fourth quarter of 2009. Shortly after the spin-off, we plan to undertake additional restructuring activities to more effectively align our organizational structure and costs to our strategy. We are also evaluating the countries in which we operate as part of the effort to align our cost structure, and we may decide to cease or reduce operations in certain countries. In connection with these additional restructuring activities, we expect to incur additional restructuring charges of up to $200 million, substantially all of which is expected to be incurred from the date of the spin-off through the first half of 2010.
AOL recently cut 100 jobs, and that 1,000 or more additional cuts could lie ahead.
in connection with the company’s pending spinoff from Time Warner , AOL said it expects to take $200 million to cover “additional restructuring activities,” with all of the hit coming from from the date of the spin through the first half of 2010.
Here’s the key paragraph from the filing, which suggests that the restructuring moves the company has made so far pale compared to whatever it has in mind in the months ahead:
We undertook various restructuring activities in the first nine months of 2009 in an effort to better align our cost structure with our revenues. As a result, for the three and nine months ended September 30, 2009, we incurred restructuring charges of $10.2 million and $82.9 million, respectively, related to involuntary employee terminations and facility closures. We currently expect to incur up to $20 million of additional restructuring charges through the spin-off, which is anticipated to occur in the fourth quarter of 2009. Shortly after the spin-off, we plan to undertake additional restructuring activities to more effectively align our organizational structure and costs to our strategy. We are also evaluating the countries in which we operate as part of the effort to align our cost structure, and we may decide to cease or reduce operations in certain countries. In connection with these additional restructuring activities, we expect to incur additional restructuring charges of up to $200 million, substantially all of which is expected to be incurred from the date of the spin-off through the first half of 2010.
AOL recently cut 100 jobs, and that 1,000 or more additional cuts could lie ahead.
0 comments:
Post a Comment