AOL overdrawn and quartered: Company will can 5,000 employees

AOL, the sickly siamese twin of Time Warner, announced it will fire 5,000 people by the year's end. Those cuts probably focus on the Access department, which announced yesterday that it will give AOL broadband access for free. (Veteran AOL exec Ted Leonsis doesn't mention the layoffs in his chipper forecast for the company.)

While AOL predicts losing more than half of its subscribers over the next three years, other departments are doing just fine. AOL's ad market is exploding, turning it into a powerhouse portal. Another business plan overhaul for AOL, another leg of the company's never-ending search for its own soul.

AOL to Cut Up to 5,000 Jobs As Part of Restructuring [WSJ]
Photo: At AOL, a Plan for a Clean Break [NYT]