AOL's America Online cuts to include Virginia jobs

AOL Time Warner Inc's internet unit America Online is planning to slash at least $100m (€100m) in operating expenses, including hundreds of jobs at its Northern Virginia headquarters, because of a sharp drop in advertising revenue and changes in business strategy, the Washington Post reported citing sources.

The cost-cutting is aimed at bringing costs in line with a projected plunge of 50% in advertising revenue next year, it said.

America Online Vice Chairman Joseph A Ripp, who is overseeing the spending cuts, told managers that no division of the internet service provider will be immune from a detailed review of its operating expenses, the sources said.

Decisions about where to make the cuts will be made over the next few months, sources said.

America Online employs more than 5,500 people in Northern Virginia. Employees in New York, California and Ohio also may lose their jobs, the report said.

The company also hopes to save money by cutting computer network expenses.