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Thu, Aug 03, 2006 8:54 pm

AOL Cuts 5,000 Jobs

AOL plans to cut about 5,000 jobs within 6 months as it tries to move away from its dwindling subscription dial-up service. AOL is planning to offer its services for free to broadband users, counting on advertising revenues to sustain it.

AOL's user base has been dwindling as users move to broadband services. Those that don't have access to broadband services or don't want to pay for broadband services are also likely to choose cheaper dial-up services rather than pay a premium price for AOL's ad-saturated dial-up service.

References:

  1. AOL to slash 5,000 jobs
    CNNMoney.com
    August 3, 2006
  2. AOL Tells Broadband Customers to Find New ISP
    MoonPoint Support
    November 12, 2004

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