More Cuts Coming!

Today AOL LLC, an Internet company said they plan on reducing their workforce by 2,500 people. Their going to be asking for volunteers, which will come with a buyout offer. I read that the buyouts were going to cost close to $200 million. This just shows that the online advertising is still slumping. Also read that new AOL CEO, Tim Armstrong is also forgoing a bonus this year. It’s probably a good idea for him to refuse that bonus, because the talk around the bathroom hand dryers wouldn’t be good for him. Anyway, this cut will save AOL about $300 million annually, which is huge. Their going to force more on what’s profitable within AOL, and cut off areas that are not. I think a cut of this size will give AOL the chance to save money and start fresh. They will help them grow in new areas of the Internet, and make them stronger down the road.