AOL to Shed 2,500 Jobs in Prep for Spin-Off

New York, NY (AHN) – Thousands of AOL employees can expect an unmerry Christmas next month as the company announced Thursday it will lay off or fire up to 2,500 employees in the coming weeks.

In a filing with the Securities and Exchange Commission, the company said the personnel reductions were part of the planned spin-off of AOL from Time Warner.

The company is trying to save $300 million a year through the restructuring, according to the filing. AOL also will take another $200 million in related charges.

A voluntary layoff program will begin Dec. 4 and continue through Dec. 11. If AOL does not get enough interest in the buyout program, it will begin firings.

Chief Executive Officer Tim Armstrong informed the company’s 6,900 employees in an e-mail that he would fore-go his 2009, which was expected to be at least $1.5 million.

AOL acquired Time Warner for $106 billion in 2001. The spin-off, announced by Time Warner in May, will occur Dec. 9. AOL will begin trading as a separate company the next day.

Share of Time Warner (TWX) were down 2 percent at 3:20 p.m.