AOL to Cut 2,500 Jobs

As AOL looks forward to its Dec. 9 spin-off from Time Warner Inc., the company wants to eliminate 2,500 jobs, around one-third of its 6,900-person workforce. AOL employees have until Dec. 11 to volunteer for layoffs, at which point the company will resort to mandatory dismissals. AOL CEO Tim Armstrong will forgo his 2009 bonus—expected to be between $1.5 million and $4 million—as he and the company work toward cutting operating costs by $300 million.