AOL announced 1,700 layoffs due to the falling advertising market and weakened American economy. The layoffs will cut across the board including managers and employees at various levels including Web and technology development staff. Until about a month ago when key media divisions slowed, AOL executives boasted that the diversified revenue including cable, Internet, movie, and music would protect the newly merged company against the effects of the slowing economy.
See "AOL Says Ad Slump Led to Cuts", Alec Klein and Amy Joyce, The Washington Post, August 21, 2001