AOL Lays Off 1,400 Customer Service Reps

By Ed Oswald | Published October 19, 2006, 10:23 AM

As part of its cost-cutting measures, AOL gave pink slips to 1,400 call center workers in Albuquerque, N.M. and Tucson, Ariz., notifying them that the ISP plans to close those facilities down. Additionally, 400 people in an Ogden, Utah call center were notified that AOL would sell that location.

The closures are scheduled to occur in mid-December, while the Utah facility would be sold "in the coming months," the company said. It is not clear how many would retain their positions in a new company, as AOL did not give specifics on the sale.

The nation's largest ISP announced in August that it was transitioning to a free service, which it hoped be kept afloat by an increase in Web advertising. The move was a gamble, however, as it stood to lose nearly $2 billion in subscriber revenue alone.

As a result, AOL has made cuts in its spending, reducing customer service and marketing positions, and selling its Internet access divisions in the UK, France, and Germany.

So far, about 4,000 have lost their jobs as a result of the changes, with about 5,000 total expected to be laid off by the end of the transition. An AOL spokesperson said the sales of its international units resulted in few layoffs, as the acquiring companies retained nearly all employees.

Comments

View comments by with a score of at least

"I hope they go out of business."
-----------------------------------------------
Don't count on it. If anything they will come back stronger than ever.
Also, most of those laid off individuals have been assured of jobs elsewhere.

Score: 0

|

After losing 2 billion in revenue a year after going to freeware, how will they pay these relocated employees? You are wrong sir. Those people no long work for AOL. Which is also why they sold all of their overseas companies as well.

Score: 0

|

"Those people no long work for AOL."
--------------------------------------------
No, you are misinformed, sir. They still work for AOL even though they've received lay off notices and as I said, most of them (US employees) have been assured of employment elsewhere.

Score: 0

|

sux to be working for them. for all my anti aolism, i do tip my hat to them since they did help make the net more attainable to the masses. they were a stepping stone and their time came and went.

Score: 0

|

I hope they go out of business.

Score: 0

|

Thank GOD! Remember people:

If you are on AOL..you are SOL.

Score: 0

|

Thank GOD! Remember people:

If you are on AOL..you are SOL.

-----------------------------------------------
You wish.

Score: 0

|

Microsoft launches Office 2010 technical beta a few days early

A big week for Microsoft starts off with an out-of-sync surprise: the early release of the Office Technical Beta ahead of the launch keynote.

PDC 2009 Day 0: Vista is through

If there was any doubt in your mind that Microsoft is putting Vista behind it, the first session at PDC would eliminate it for good.

Windows Marketplace for Mobile launches on WinMo 6.0 and 6.1

No longer isolated to Windows Mobile 6.5, the Windows Phone app store has opened up to older versions of Windows Mobile.

Samsung releases another Android: where will it fit in with Bada approaching?

Samsung today announced the Galaxy Spica, sequel to its first Android handset destined for Europe and Asia.

Twitter to abandon 'politically biased' suggested user list

Twitter's suggested list of users to follow will be going away, says co-founder Biz Stone.

The Internet can still be a positive force, World Wide Web Foundation says

Sir Tim Berners-Lee's World Wide Web Foundation has launched worldwide operations.

Blockbuster's way down, but poised for a comeback

Though it took a serious beating in 2009, Blockbuster CEO Jim Keyes says the company can turn it around.

iTunes Preview doesn't go far enough to create Web-based option for store

Apple has rolled out iTunes Preview, a Web interface for browsing iTunes.

PDC 2009 Preview: The move to Office 2010 and Visual Studio 2010

The major focus of Microsoft's conference next week will likely be explaining why two pillars of its software sales strategy deserve to remain where they are.

Dell's first smartphone aids the Android onslaught

Longtime PC leader Dell has finally announced its Android-based smarphone.

After the Intel + AMD armistice: Do we really want a level playing field?

Scott Fulton On Point: One by one, the reasons for us to continue suspending the course toward open and fair competition in IT, are dropping like flies.