Struggling internet company AOL is planning on cutting 20 per cent of its workforce in the wake of its $315 million acquisition of online news website Huffington Post.
The company said that it will slash a total of 900 jobs, with 700 being released in India and 200 people being outed from its US workforce. AOL said that 300 of the planned 900 job cuts will be outsourced. The job cuts in AOL's Bangalore office in India will mostly affect its back-end support staff.
“Moving forward, our focus in India will be on our core capabilities around building the most compelling consumer facing products primarily for the Indian and other Asian markets. We'll be partnering Mindtree and HP to round out our business operations,” the company said in a statement.
An AOL spokesperson told the Los Angeles Times that the job cuts are a part of the company's massive restructuring and revenue stabilisation drive and will also allow them to better integrate the Huffington Post staff within the company.
The company had acquired the Huffington Post for $315 million in a bid to revamp its image as a major online content provider, offering written as well as video content. AOL has been struggling recently and has registered a decline in revenue over the past four quarters.