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AOL Grapples With Harsh New Reality

Former Internet Titan to Slash Work Force by a Third as It Breaks Off From Time Warner

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AOL Inc. is planning to cut about a third of its staff as the struggling Internet company attempts to rein in costs and resurrect its business in preparation for its spinoff from Time Warner Inc. next month.

The company said Thursday it is asking for up to 2,500 people across all divisions to take buyout packages during a one-week program starting Dec. 4. If AOL doesn't reach that target, it intends to make involuntary layoffs, leaving the company with about 4,400 employees.

News of the cuts come three weeks before AOL is scheduled to separate from Time Warner, closing the ...

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