Time Warner internet unit AOL will cut 2,000 jobs in a bid to boost online advertising, according to a memo obtained by Reuters last night.
The cuts, which begin today, amount to about one-fifth of AOL's global workforce and are spread across operations in the United States and in Europe, where the company has sold off its Internet access businesses.
AOL plans to boost investment in higher growth areas such as advertising and new international regions, AOL chief executive Randy Falco said in the memo. Mr Falco said AOL will set up in seven countries this year and will operate in 30 countries by the end of 2008.
Some senior executives will leave as part of the restructuring.
The cuts come after AOL pared online ad growth expectations for the year at the end of the second quarter amid a realisation that marketers are increasingly relying on third-party networks to buy ad space on websites.