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Wednesday, 24 January, 2001, 09:13 GMT
AOL Time Warner sheds more jobs

AOL Time Warner has already said 400 jobs are to go at CNN
AOL Time Warner, the recently merged internet and media giant, is reported to be cutting about 2,000 more jobs to reduce costs.

Analysts said the cuts would be delivering on a promise to shareholders that the merger would bring substantial cost savings and earnings growth.

The reports came less than one week after the group said 400 jobs would be lost at its cable news division CNN.

AOL Time Warner will announce the job cuts later on Wednesday, the US trade newspaper Daily Variety said.

It said up to 2,400 jobs might go as well as a further 3,800 if the group pursued plans to sell or close its Warner Brothers retail operations.

Almost all remaining AOL Time Warner staff would receive stock options, the reports said.

Tough targets

The divisions affected by the latest staff cuts were reported to include America Online, the publisher Time, Warner Music Group, film studio New Line Cinema and internet portal Entertaindom.com.

About 100 AOL Time Warner corporate jobs would also go, Daily Variety said.

Analysts said AOL Time Warner might have trouble meeting the very tough profit growth targets it had set itself for this year.

In light of the US economic slowdown, the group would probably have to cut costs more than it had initially expected if it was to meet the targets, they said.

Co-chief operating officer Bob Pittman was on Wednesday quoted in the Wall Street Journal as saying the staff cuts were more to "get the right organisation and structure in place" than to save money.

He declined to estimate the cost savings that would be achieved.

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18 Jan 01 | Business
CNN to axe 400 jobs
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