The merger of the two media powerhouses AOL and Time Warner has meant that the new company is facing a charge of almost $1bn to pay for restructuring costs.
According to the merged company's annual report filed with the Securities and Exchange Commission, AOL Time Warner recorded a restructuring liability of around $965m during its first quarter.
Over half of this figure, $565m, is from employee layoffs and job cuts. The remaining $400m is from lease and contract termination costs. The company is reducing its staff levels and selling off assets to meet its goal of $11bn in cash flow this year.
Since the completion of the merger in January, AOL Time Warner has slashed 2400 jobs, about 2.8 per cent of its 85,000 strong workforce.
But in turn, shares have rocketed by about 14 per cent. The company also noted that its first-quarter loss has shrunk from $1.46bn to $1.37bn, due to the cost cuts.
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