AOL cuts 1,200 jobs

August 21, 2001 Posted: 0932 GMT

NEW YORK (CNNfn) -- AOL Time Warner is cutting 1,200 jobs at its flagship Internet service provider business as part of continuing merger integration efforts.

The company said Tuesday America Online is cutting 1,200 jobs, while 500 jobs are being trimmed at iPlanet, an e-commerce solutions company formed by an alliance between Netscape and Sun Microsystems (SUNW: Research, Estimates). The cuts will result in a charge of $100 million to $125 million in its third quarter.

AOL Time Warner officials said the company has completed its large-scale job cuts, but added the company is always looking for efficiencies.

AOL Time Warner, the parent of CNNfn, said the reorganization "further leverages synergies gained through the AOL Time Warner merger and more tightly integrates its multiple online brands and Web properties."

The company is creating an AOL Interactive Services Group, which combines AOL and its Digital Cities property, and an AOL Web Properties Group, which will encompass Netscape, CompuServe, Moviefone, MapQuest, ICQ and AOL Instant Messenger.

Earlier this year, AOL Time Warner laid off 2,400 people from all parts of the company, including 725 positions in the online division.

Shares of AOL Time Warner (AOL: Research, Estimates) fell 31 cents to $39.90 on the New York Stock Exchange Tuesday.

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