AOL will axe 2,500 jobs

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A third of the workforce at AOL will lose their jobs before the company spins off from Time Warner.

The process will work like this, according to a memo written by CEO Tim Armstrong, and reported in the Wall Street Journal:  It wants volunteers for layoffs up until 11 December and if it doesn't get enough will axe the ones it thinks it should go.

AOL has flagged quite a bit over the last few years. In the days before the dot com bubble burst, its share price was so great that it was able to buy Time Warner - an unlikely marriage of unequals.

Armstrong said he will forego his 2009 bonus, which the WSJ estimates was between $1.5 million and $4 million.

The WSJ story is here (subscription needed).