AOL to lay off one-third of its workforce

Internet company AOL today said it is planning to reduce one-third of its workforce, as part of its cost cutting initiative.

The company today informed its employees of proposed restructuring activities as part of its continuing cost reduction initiatives, AOL said in a regulatory filing with the US Security and Exchange Commission.

"The restructuring is conditioned upon the successful completion of the company's previously announced spin-off from Time Warner Inc," the filing added.

The layoff of one-third of its workforce would mean 2,500 job losses, as the current employee base of AOL is reportedly about 6,900 employees.

As part of the current restructuring plan the company would reduce around a third of its current employee base "which will be conducted on a voluntary and involuntary basis", AOL said.

As part of this said restructuring plan AOL expects to incur restructuring charges of up to $200 million, AOL said adding that the said restructuring is likely to reduce operating costs by about $300 million.