NEW YORK (CNN/Money) -
America Online cut about 300 jobs Wednesday, a source close to the company told CNN/Money, and more cuts are planned relatively early next year.
The Wednesday layoffs were the first since the troubled Internet service provider disclosed turnaround plans last week and are likely the last to occur in December, a company source said.
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AOL has about 18,000 employees, so Wednesday's cuts represent less than 2 percent of its staff. AOL CEO Jonathan Miller told analysts and reporters last week that cost-cutting efforts are aimed at reducing annual expenses by more than $100 million, and the company source confirmed Wednesday that more cuts can be expected.
"There are other elements or cost cuts, including telecom costs coming down, but it's safe to assume there will be more [job] cuts," he said. "Cost management is a continuing process."
The 300 employees laid off Wednesday come primarily from the company's Dulles, Va., headquarters, though some other locations, including Mountainview, Calif., also were affected. Mountainview lost about 6 percent of its staff of 1,000. Technology, primarily software developers, was the major area affected Wednesday.
Shares of AOL parent AOL Time Warner (AOL: Research, Estimates), which also owns CNN/Money, were down 10 cents to $13.65 in Wednesday trading.
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