May 9, 2006 8:58 AM PDT

AOL lays off 1,300

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AOL announced on Tuesday that it will show 1,300 workers the door and completely close its Jacksonville, Fla., customer support facility.

The layoff, which affects mainly call center operators, will also hit the Time Warner Internet unit's Tucson, Ariz., and Ogden, Utah, call centers.

The number of callers using AOL help lines has declined by about 50 percent in the past two years, Nicholas Graham, vice president of AOL corporate communications, told CNET

"We are dealing with a member base far more sophisticated than that of '96, when we established the call centers," Graham said, "We have also greatly expanded the number of products that have diagnostic tools enabling members to troubleshoot on their own. As a result, our member base is generating fewer calls.?

But AOL has also seen a decline in subscribers. The company announced a loss of 865,000 U.S. members and a 7 percent decline in revenue in its fiscal fourth quarter, bringing U.S. membership down to 18.6 million.

As AOL loses more subscribers to high-speed broadband services, it is focusing on other forms of revenue. It announced a 26 percent rise in advertising revenue from its free online Web site. It has also announced a new free phone-to-PC service through AIM Phoneline Unlimited.

See more CNET content tagged:
call-center, Jacksonville, America Online Inc., Time Warner Inc., U.S.


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I wonder...
I wonder when they are going to outsource the rest of their call center stuff to India...
Posted by justdaven (309 comments )
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I wonder how long it will be before AOL finally finds a cure for it's terrible case of cranial rectal inversion and will then decide to offer a subscribtion based AIM client that is advertisment free. I can't even imagine the amount of money they would make in subscription fees.
Posted by FTL_Johnson (3 comments )
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Posted by transam98 (2 comments )
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Message has been deleted.
Posted by transam98 (2 comments )
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AD free AIM
<a class="jive-link-external" href="" target="_newWindow"></a>

already availible, its nice not to have the ad for that latest hollywood flop or teen pop star randomly blasting through my speakers
Posted by kaufmanmoore (42 comments )
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