AOL to cut 2,000 jobs as part of its transition

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New York, October 15:: AOL is cutting its global work force by an additional 2,000 jobs as it continues a transition from Internet access provider to online advertising company.

The elimination of 20 per cent of its work force comes on top of 5,000 positions cut last fall, after AOL said it would try to boost traffic to its ad-supported web sites by giving away AOL.com e-mail accounts, software and other features once reserved for paying subscribers.

"This realignment will allow us to increase investment in high-growth areas of the company- as an example, we added hundreds of people this year through acquisitions- while scaling back in areas with less growth potential or those that aren't core to our business," AOL Chief Executive Randy Falco told employees.

The cuts affect about 1,200 positions in the United States, including 750 in northern Virginia, which has long been AOL's headquarters, and about 800 overseas. AOL recently announced it was moving its headquarters to New York to be closer to the media advertising industry.

Most of the US employees affected were to be informed and terminated tomorrow, while reductions abroad were expected by year's end. Severance packages are to include at least four months' pay.