New York – Just days after closing its $315 million
acquisition of The Huffington Post, AOL (NYSE: AOL) on Thursday cut about 900 jobs — or
20% of its workforce — in an attempt to mesh the two staffs. About 200 of the
cuts occurred in the U.S., focusing on content and media sites such as Daily
Finance, Wallet Pop and Politics Daily, according to the Wall Street Journal.
The remainder of the cuts centered on back-office support staff in India.
No
employees from The Huffington Post were affected, according to reports.
Tim
Armstrong, the CEO of AOL, told PaidContent the changes are largely the result
of continuing struggles in the company’s News & Finance business, which he
said is losing about $20 million a year.
"In contrast, Huffington Post is
high growth and will be high profitability in that area," Armstrong told
the site.
"So the changes there reflect the ability for us to go from a
model where Finance & News has been struggling as an Internet
business."
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