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The struggling Internet company AOL plans to shed up to 2,500 jobs – more than a third of its workforce – as it prepares to separate from Time Warner and finally sever their ill-fated marriage.
Major job cuts had been expected and seemed certain after Time Warner said last week that AOL would take $200 million in charges for severance and other restructuring-related costs. But the magnitude was not known until Thursday.
AOL, which has already pared thousands of workers in recent years and now employs about 6,900, is asking for volunteers to accept buyouts. If it falls short of the 2,500 target, it plans layoffs to reach a payroll cut of up to 2,300 positions, a third of its current total.
The cuts will leave AOL at less than a quarter the size it was at its peak in 2004, when it had more than 20,000 employees.
The reductions show the Internet company is endeavoring to become lean as it leaves Time Warner’s side in three weeks.
Navistar International Corp. got a postponement until January of a hearing before an Illinois zoning board as it seeks to consolidate operations in the suburban Chicago village of Lisle.
If Navistar makes the move, Fort Wayne likely would lose the Navistar Truck Design and Development Center and the center’s 849 jobs.
Navistar wants to move to a vacant corporate campus in Lisle, but it needs special-use and planned-unit-development permits from the village. Some residents have raised concerns about noise, fuel storage and the effect a new truck-design building would have on the view.
The Lisle Planning and Zoning Commission on Wednesday granted Navistar’s request to postpone the next public hearing until January, said Josh Potter, the village planner. Navistar asked for the postponement so it can further refine its proposal.
A gauge of future economic activity and a report on unemployment benefits signaled Thursday that the recovery likely will remain weak in the coming months.
The Conference Board’s index of leading economic indicators rose less in October than analysts had expected. The index of leading economic indicators rose 0.3 percent last month, indicating a slow, bumpy recovery next year. The index forecasts activity by measuring consumer expectations, building permits and other data.
A separate Labor Department report on jobless benefits said first-time claims amounted to a seasonally adjusted 505,000 last week. That was the same as the previous week’s revised figure, and it matched analysts’ expectations. A year ago, there were 533,000 initial claims.
Kroger Co. is warning shoppers about fraudulent checks circulating with the Cincinnati-based company’s name and claiming to be the winnings from a “shoppers lottery.”
“There is no such lottery. The checks are fake,” the company said in a statement Thursday.
The forgeries show a JPMorgan Chase account in New York. Kroger customers who believe they’ve been a victim of the scam should call 1-800-KROGERS.
The company plans to works with law enforcement agencies to identify and prosecute those involved in the scam.
