AOL To Lay Off A Third Of Staff

SAN FRANCISCO (AP) -- AOL says it plans to shed up to 2,500 jobs - or about a third of the struggling Internet company's work force -- as it prepares to separate from Time Warner.

AOL has already pared thousands of workers in recent years and now employs about 6,900 people. The company is asking for volunteers to accept buyouts. If it falls short of its target, AOL plans layoffs to reach its payroll reduction goals.

The cuts will leave AOL at less than a quarter the size it was
at its peak in 2004.

The reductions show the Internet company is trying to become
lean as it leaves Time Warner's side in three weeks. But it's
unclear how the cuts will help AOL, which has been trying to
reinvent itself as a content and advertising company amid an
ongoing decline in its legacy dial-up Internet access business.

The job cuts still need approval from the new AOL board.