Memo From AOL’s Falco: 10 Percent Staff Cut, International Re-Org, No Merit Raises

imageIn the past few years, AOL’s reorganizations and staff cuts have been driven by internal issues. This time, it’s the economy, *AOL* CEO Randy Falco told staff via a memo, as “online marketers have tightened their ad buying across the board, reducing their spend by hundreds of millions of dollars.” The Time Warner unit will cut its workforce by 10 percent, about 700 jobs, over the next “several quarters” and will skip merit raises for 2009. It also will reorganize internationally and consolidate office space as it tries to buy time to make it through the recession.

Falco: “As difficult as things look right now, the economy eventually will turn around. Some companies will use this time prudently and make difficult decisions to come out of it in better shape