Demerging AOL to cut third of workforce

One-time internet giant AOL is expected to cut about a third of its workforce as part of its plan to separate from Time Warner on December 9.

AOL is to cut 2,500 jobs as part of a plan to save US$300m (€201m), while CEO Tim Armstrong has announced he is to forego his bonus for this year.

AOL will become a separately traded company on December 10, following the dissolution of its nine-year old merger with Time Warner, hailed at the time as the shape of things to come but now widely viewed as a commercial disaster.