AOL to cut 1,300 jobs as call center volume slides http://today.reuters.com/news/newsArticle.aspx?type=internetNews&storyID=2006-05-09T165117Z_01_WEN7250_RTRUKOC_0_US-MEDIA-AOL-JOBS.xml
NEW YORK (Reuters) - Time Warner Inc.'s Internet company AOL on Tuesday said it would cut 1,300 jobs, or 7 percent of its work force, largely at call centers where customer queries have dropped dramatically. "The bottom line is call center volume has declined by 50 percent in the past two years," said AOL spokesman Nicholas Graham. AOL has introduced more extensive tools online for customers to help solve Internet problems on their own and seen its subscriber base grow more sophisticated in using the Web, he said. AOL has also seen a steady stream of subscribers leave its older dial-up Internet service, with a deeper-than-expected loss of 835,000 U.S. customers reported in the first quarter. Some have moved to its high-speed Internet offerings or those provided by corporate sibling Time Warner Cable. The unit saw revenue drop 7 percent during the period as it tries to overhaul its business to reap more advertising dollars from entertainment and services provided on its Web network. Time Warner Inc., the world's largest media company, has sought to reduce costs as part of a larger program to boost the value of its shares, including a stock buyback program. The company's publisher Time Inc. has eliminated more than 450 jobs since December. Most of the AOL job cuts will occur as the company closes a customer support center in Jacksonville, Florida, while other positions will be eliminated in Tucson, Arizona, and Ogden, Utah, the company said. Time Warner shares were unchanged at $17.05 on the New York Stock Exchange. Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list medianews@twiar.org To unsubscribe send an email to: [EMAIL PROTECTED]
