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Bulk Of AOL’s 26 Percent Staff Reduction Completed Through Layoffs, Sales

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Updated: Well, at least the bulk under the plan set out by previous management in August, according to Reuters. Back when Jon Miller was still chairman and CEO, the company matched its abrupt change in ISP strategy with word that its workforce would be reduced by 5,000. Some of that came about through the sales of AOL’s European ISPs and a U.S. call center; some were straight layoffs due to the closing of three other U.S. call centers. More notices went out today; 450 in Northern Virginia primarilyt to people involved in the access business. What will happen in the wake of Randy Falco’s appointment as Miller’s replacement is anyone’s guess although, as we reported here last week, Time Warner Chairman and CEO Dick Parsons said he wanted to be careful not to create at an atmosphere of fear but that it’s up to Falco and new COO Ron Grant.
Update: Valleywag is reporting that today’s layoffs include senior execs Joe Redling, John McKinley, Kevin Conroy and Jim Bankoff, but that isn’t the case. An AOL spokesman said the company doesn’t comment on reports like that but I’ve been able to confirm that the four are still working there — for now. That doesn’t mean the current exec team will remain intact. Some could leave for new gigs, which shouldn’t be hard to do, or Falco and Grant could decide they need to make changes. (For those of you waiting for dramatic gestures, remember that they probably benefit more financially if the decision comes from the company.) Even if they stay, the structure is likely to shift as the new top team finds its course. I don’t see either Falco or Grant being happy wearing other mens’ shoes.