AOL Lays Off 1,400 Customer Service Reps

By Ed Oswald, BetaNews

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.