ALBUQUERQUE, N.M.. Oct. 18, 2006

AOL To Cut Jobs, Close Call Centers

Online Giant Will Lay Off 1,300 As Part Of Restructuring Plan

  • Play CBS Video Video Teacher Wins 'Gold Rush'

    AOL's online game, "Gold Rush," has another winner. Adam Raichel speaks with Harry Smith about the victory and decides if he'll take his $100,000 in the form of a check or a gold bar.

  •  (CBS/AP)

  • Interactive Eye On The Economy

    In-depth features on U.S. markets, taxes, employment and the Federal Reserve.

(AP)  AOL announced Wednesday it will lay off 1,300 employees by closing call centers in New Mexico and Arizona as part of a previously announced restructuring plan.

AOL, the Time Warner Inc. online unit formerly known as America Online, also plans to sell its call center in Ogden, Utah.

The cuts include 900 layoffs at the Albuquerque call center and 400 jobs at the center in Tucson, AOL spokesman Nicholas Graham said. The Arizona and New Mexico call centers each have operated for 10 years.

The closures are part of a restructuring plan that Dulles, Va.-based AOL announced in August. At the time, the company said as many as 5,000 employees would be laid off within six months — a quarter of its global work force.

"These decisions were very difficult to make, given our long tenure in Albuquerque and Tucson, but they're necessary in terms of the needs of the company and our users," Graham said.

The Arizona and New Mexico employees were informed of the layoffs Wednesday morning, then given the day off. They will return to work Thursday and continue employment with AOL through Dec. 15, when they'll be offered a severance package that provides a combination of salary and benefits.

AOL did not disclose which company will purchase the Utah facility.



©MMVI, The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
Add a Comment
by cornflower3 October 18, 2006 11:34 PM EDT
i would rather be talking to employees in arizona or new mexico than india. i've had quite a bit of a problem when i had a question and had to call aol and didn't understand what the person was telling me to do.
Reply to this comment

60 Minutes

The secrets of tennis legend Andre Agassi; the growing threat of cyber wars; and more.
Read More

Latest News
News in Pictures
Scroll Left Scroll Right
  • The Fall Of The Berlin Wall The Fall Of The Berlin Wall

    Looking Back at the Wall that Once Divided Germany On the 20th Anniversary of Its Collapse

  • Patricia Clarkson Patricia Clarkson

    Television and Film Actress, Yale School of Drama Graduate and Academy Award Nominee

  • Day in Pictures Day in Pictures

    A Glimpse at the Day's News as Seen Through a Camera Lens

  • Andre Agassi Andre Agassi

    Former Top-Seeded Tennis Star, Gossip Column Favorite and Philanthropist

  • Yankees Victory Parade Yankees Victory Parade

    The Yankees Celebrate Their 27th World Series Championship with a Ticker-Tape Parade Up Broadway

  • Orlando Office Shooting Orlando Office Shooting

    A Gunman Opens Fire at the Offices of an Engineering Firm Where He Once Worked

Connect with CBS News

Stay connected with the CBS News using your favorite social networks and online news applications: