AOL Laying Off 1,200

The ax will fall on 1,200 AOL workers this week in the last stage of the company's goal to shed a total of 2,500 jobs, about a third of its workforce. Many European offices will be closed as part of the company's plan to restructure as a Web publisher, reports the Washington Post.

This week's layoffs mark "the completion of phase one of AOL's turnaround," said an exec at the firm, which employed over 20,000 people at its peak. This round of restructuring will cost it $200 million, but the company expects to save $300 million in annual operating expenses as a result, according to company officials.
(More AOL stories.)